{"id":"weth-wrapped-eth","title":"WETH (Wrapped ETH)","content":"**WETH**, or Wrapped Ethereum, is an [ERC-20](https://iq.wiki/wiki/erc-20) token that [ETH](https://iq.wiki/wiki/ethereum), the native [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) of the [Ethereum](https://iq.wiki/wiki/ethereum) blockchain, fully collateralizes. It serves as a tokenized variant of ETH and is intended for use in [dApps](https://iq.wiki/wiki/decentralized-application) that need an ERC-20 token. [\\[1\\]](#cite-id-0x0n0rrlffrb)\n\n# Overview\n\nWrapped Ethereum (WETH) is a tokenized [Ether (ETH)](https://iq.wiki/wiki/ether-eth) form that complies with the [ERC-20](https://iq.wiki/wiki/erc-20) standard on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain). Wrapped tokens like WETH represent their original [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency) at a 1:1 value and can be converted back into the original asset at any time. This concept is similar to [stablecoins](https://iq.wiki/wiki/stablecoin), which are [pegged](https://iq.wiki/wiki/currency-peg) to [fiat](https://iq.wiki/wiki/fiat-money) currencies and redeemable on demand.\n\nThe primary purpose of wrapped tokens is to enable interoperability across different [blockchains](https://iq.wiki/wiki/blockchain), which otherwise have limited compatibility. Native coins from one [blockchain](https://iq.wiki/wiki/blockchain) cannot be used directly on another. Wrapping a coin applies the receiving [blockchain’s](https://iq.wiki/wiki/blockchain) token standard to a tokenized version of the original asset, allowing it to function within that ecosystem.\n\n[Ethereum’s](https://iq.wiki/wiki/ethereum) native [cryptocurrency](https://iq.wiki/wiki/cryptocurrency), [ETH](https://iq.wiki/wiki/ether-eth), does not follow the [ERC-20](https://iq.wiki/wiki/erc-20) token standard that most fungible tokens on [Ethereum](https://iq.wiki/wiki/ethereum) adhere to, which complicates its use in [decentralized applications (dApps)](https://iq.wiki/wiki/decentralized-application). WETH was introduced to address this by providing an [ERC-20](https://iq.wiki/wiki/erc-20) compatible version of [ETH](https://iq.wiki/wiki/ether-eth), enhancing interoperability and usability within [dApps](https://iq.wiki/wiki/decentralized-application).\n\nWrapped tokens require custodians, which can be [smart contracts](https://iq.wiki/wiki/smart-contract) or other mechanisms, to hold the original asset as collateral. When [ETH](https://iq.wiki/wiki/ether-eth) is sent to such a custodian, an equivalent amount of WETH is [minted](https://iq.wiki/wiki/minting). This maintains the same value while enabling WETH to interact seamlessly with other [ERC-20](https://iq.wiki/wiki/erc-20) tokens in [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) applications. On [Ethereum](https://iq.wiki/wiki/ethereum), WETH is commonly used in [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) and other [dApps](https://iq.wiki/wiki/decentralized-application) where only [ERC-20](https://iq.wiki/wiki/erc-20) tokens are accepted. Other [blockchains](https://iq.wiki/wiki/blockchain) may have their versions of wrapped [Ether](https://iq.wiki/wiki/ether-eth) to facilitate similar functionality. [\\[7\\]](#cite-id-GYVdvMLm2J) [\\[8\\]](#cite-id-fLkQy5tuwN)\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=pMd5yEfLMbU)$$\n\n## History\n\nThe [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain) and [ETH](https://iq.wiki/wiki/ether-eth) were introduced in July 2015, before the development of the [ERC-20](https://iq.wiki/wiki/erc-20) standard. [ERC-20](https://iq.wiki/wiki/erc-20), which establishes a uniform token standard, was initially introduced in November 2015. Consequently, while tokens employed by [Ethereum's](https://iq.wiki/wiki/ethereum) [decentralized applications](https://iq.wiki/wiki/decentralized-application) adhered to the [ERC-20](https://iq.wiki/wiki/erc-20) standard, the [Ether](https://iq.wiki/wiki/ether-eth) [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) itself did not follow this standard. [\\[6\\]](#cite-id-fh7xsxb9ojp)\n\nIn 2017, the [0x](https://iq.wiki/wiki/0x) project team introduced WETH to address the interoperability challenges between various [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) and [dApps](https://iq.wiki/wiki/decentralized-application) on the [Ethereum](https://iq.wiki/wiki/ethereum) network. During that period, distinct token standards among [DEXs](https://iq.wiki/wiki/decentralized-exchange) hindered asset movement across platforms. WETH aimed to establish a standardized, interoperable system by tokenizing [ETH](https://iq.wiki/wiki/ether-eth) for seamless trading and integration with other [dApps](https://iq.wiki/wiki/decentralized-application) and [DEXs](https://iq.wiki/wiki/decentralized-exchange). The initial WETH contract went live on the [Ethereum](https://iq.wiki/wiki/ethereum) [mainnet](https://iq.wiki/wiki/mainnet) in January 2018. [\\[2\\]](#cite-id-gu5px3h3enj)\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=hhuJRsv9ao8)$$\n\n# Supply Mechanism\n\nA predetermined limit does not bind WETH's supply but adapts according to demand dynamics. Upon an individual's conversion of [Ether](https://iq.wiki/wiki/ether-eth) to WETH, the [smart contract](https://iq.wiki/wiki/smart-contract) generates newly minted WETH tokens. Conversely, when WETH is exchanged for [Ether](https://iq.wiki/wiki/ether-eth), an equivalent quantity of WETH is retired. [\\[6\\]](#cite-id-fh7xsxb9ojp)\n\nDespite its 1:1 [pegging](https://iq.wiki/wiki/currency-peg) to [Ether](https://iq.wiki/wiki/ether-eth), marginal fluctuations (typically below 1%) may arise between WETH and [Ether](https://iq.wiki/wiki/ether-eth), influenced by variables such as Ethereum's [transaction fees](https://iq.wiki/wiki/transaction-fee) and trading activities on [centralized](https://iq.wiki/wiki/cex-centralized-exchange) and [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange). [\\[6\\]](#cite-id-fh7xsxb9ojp)\n\nIn theory, a scenario may emerge wherein WETH demand wanes completely, ceasing token circulation. Conversely, heightened market interest in WETH leads to an expansion in its supply. This contrasts with non-pegged [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency), where supply protocols frequently incorporate restrictions or scheduled issuance patterns. [\\[6\\]](#cite-id-fh7xsxb9ojp)","summary":"WETH (Wrapped Ether) is an ERC-20 token fully backed by ETH, enabling its use in decentralized applications and exchanges on the Ethereum network.","images":[{"id":"QmX7ZrkNPgZ6M6dyo9QbVoPtNsLhvBsYqzaKM8V2Mvth4R","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Ethereum"}],"media":[{"id":"https://www.youtube.com/watch?v=pMd5yEfLMbU","size":"0","name":"pMd5yEfLMbU","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=hhuJRsv9ao8","name":"hhuJRsv9ao8","caption":"","thumbnail":"https://www.youtube.com/watch?v=hhuJRsv9ao8","source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"0x0n0rrlffrb\",\"url\":\"https://mudrex.com/blog/weth-wrapped-ethereum-explained/#:~:text=WETH%20enables%20greater%20interoperability%20between,worrying%20about%20different%20token%20standards.\",\"description\":\"Everything you need to know about WETH (Wrapped Ethereum)\",\"timestamp\":1692456702922},{\"id\":\"gu5px3h3enj\",\"url\":\"https://mudrex.com/blog/weth-wrapped-ethereum-explained/\",\"description\":\"WETH \",\"timestamp\":1692456781219},{\"id\":\"o0lyy5g3hr\",\"url\":\"https://www.coinspeaker.com/guides/what-is-wrapped-ethereum-weth/\",\"description\":\"What Is Wrapped Ethereum (WETH)?\",\"timestamp\":1692456813071},{\"id\":\"jc1qmgd0w0j\",\"url\":\"https://cointelegraph.com/news/what-is-wrapped-ethereum-weth-and-how-does-it-work\",\"description\":\"What is wrapped Ethereum (wETH) and how does it work?\",\"timestamp\":1692456828368},{\"id\":\"eccj7fx5mf4\",\"url\":\"https://beincrypto.com/learn/wrapped-ethereum/\",\"description\":\"BeInCrypto\",\"timestamp\":1692456850967},{\"id\":\"fh7xsxb9ojp\",\"url\":\"https://www.linkedin.com/pulse/wrapped-ether-weth-using-your-eth-funds-decentralized-apps-/#:~:text=Unlike%20many%20other%20wrapped%20tokens,blockchain%20programmers%20from%200x%20Labs.\",\"description\":\"LinkedIn\",\"timestamp\":1692457331744},{\"id\":\"GYVdvMLm2J\",\"description\":\"What is WETH? | Bitcoin\",\"timestamp\":1748365126356,\"url\":\"https://www.bitcoin.com/get-started/what-is-weth/\"},{\"id\":\"fLkQy5tuwN\",\"description\":\"What is Wrapped Ethereum (WETH)? | CMC Academy\",\"timestamp\":1748365198529,\"url\":\"https://coinmarketcap.com/academy/article/what-is-wrapped-ethereum-weth\"}]"},{"id":"contract_url","value":"https://etherscan.io/token/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/weth/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/weth"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmRj6JwiCMuhArtc9FM8b9qxT4Lx3djdD6UuBEiajvvxym\""},{"id":"commit-message","value":"\"Add internal links to WETH article for improved navigation.\""},{"id":"previous_cid","value":"QmRj6JwiCMuhArtc9FM8b9qxT4Lx3djdD6UuBEiajvvxym"}],"events":[{"id":"MGvuebJCoJ","date":"2018-01","title":"WETH went live","type":"CREATED","description":"WETH went live on Ethereum","link":"https://mudrex.com/blog/weth-wrapped-ethereum-explained/","multiDateStart":null,"multiDateEnd":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0xfaF91FF28393Cf9292A351DbEa5FA6DCF34538D3"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum","base"],"founders":["amir-bandeali","will-warren"],"speakers":[]}}