How does wrapped ETH differ from regular ETH in terms of functionality?

1 answers

• Nov 30, 2021 · 3 years ago
  Wrapped ETH is a tokenized version of regular ETH that is used on decentralized exchanges and other Ethereum-based platforms. It is created by depositing regular ETH into a smart contract, which then mints an equivalent amount of wrapped ETH. The main difference in functionality between wrapped ETH and regular ETH is that wrapped ETH can be easily traded on decentralized exchanges, while regular ETH cannot. This allows users to take advantage of the liquidity and trading opportunities offered by decentralized exchanges, as well as participate in various DeFi applications. Regular ETH, on the other hand, is primarily used for transactions and interacting with smart contracts on the Ethereum network. While both wrapped ETH and regular ETH are important in the cryptocurrency ecosystem, they serve different purposes and cater to different user needs.
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