What is the difference between WETH and regular Ethereum?

3 answers

• Dec 17, 2021 · 3 years ago
  WETH stands for Wrapped Ethereum, which is essentially a tokenized version of Ethereum. It is an ERC-20 token that represents Ether (ETH) on the Ethereum blockchain. The purpose of WETH is to enable the seamless transfer of Ether on decentralized exchanges and other platforms that only support ERC-20 tokens. By wrapping Ether in the form of WETH, it becomes compatible with the ERC-20 standard and can be easily traded and utilized in various decentralized applications.
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• Dec 17, 2021 · 3 years ago
  Think of WETH as a bridge between the traditional Ethereum network and the world of decentralized finance (DeFi). It allows users to interact with DeFi protocols and decentralized exchanges without having to directly send Ether. Instead, they can convert their Ether into WETH and use it within the DeFi ecosystem. WETH can be easily converted back to Ether whenever needed. So, in short, WETH is a way to make Ether more versatile and compatible with the DeFi space.
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• Dec 17, 2021 · 3 years ago
  WETH is an important component of the decentralized finance ecosystem. It enables liquidity providers, traders, and users to access a wide range of DeFi protocols and platforms. For example, by using WETH, you can provide liquidity on decentralized exchanges like Uniswap or participate in yield farming on platforms like Compound. WETH has gained popularity due to its convenience and compatibility with the Ethereum ecosystem. It has become a widely accepted standard for representing Ether in the DeFi space.
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