WETH stands for Wrapped Ether, and it is an essential token in the Ethereum ecosystem that allows Ether (ETH) to be used with decentralized applications (dApps) designed for ERC-20 tokens. This FAQ covers everything beginners need to understand about WETH, from its basic definition to its practical uses in DeFi.

What is WETH and why does it exist?

WETH (Wrapped Ether) is an ERC-20 token that represents Ether (ETH) at a 1:1 value ratio. It was created to solve a fundamental compatibility issue: while ETH is the native currency of Ethereum, many decentralized applications and smart contracts were built specifically for ERC-20 tokens and cannot directly handle native ETH. WETH bridges this gap by wrapping ETH into an ERC-20 compatible format while maintaining its equivalent value. The WETH contract is a trustless, open-source solution maintained by the community, ensuring that anyone can wrap or unwrap their ETH anytime.

Without WETH, users would not be able to use ETH in decentralized exchanges (DEXs), lending platforms, or liquidity pools that require ERC-20 token interactions. Think of WETH as a