Wrapped Ethereum

What is Wrapped Ether?

Wrapped Ethereum (wETH) is an Ethereum-based cryptocurrency that has been “wrapped” with the ERC-20 token standard, making it safe to trade and invest in. It is pegged to the price of Ethereum at a 1:1 ratio and is used for investing and staking on certain websites. The main reason for wrapping Ethereum is to make it more compatible with different parts of the Ethereum network, including decentralized finance (DeFi) applications. wETH can be obtained by sending Ether to a smart contract, and if the user wants to obtain Ether back, they can trade their wETH for Ether. Wrapped tokens, like wETH, solve interoperability issues between different blockchains.