What is WETH and how does it relate to the world of cryptocurrency?

3 answers

• Dec 16, 2021 · 3 years ago
  WETH stands for Wrapped Ether, which is an ERC-20 token on the Ethereum blockchain. It is essentially a representation of Ether (ETH) that can be used in decentralized applications (DApps) and smart contracts. WETH is created by depositing ETH into a smart contract, which then mints an equivalent amount of WETH. This allows users to trade and interact with ETH in a more standardized way within the Ethereum ecosystem.
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• Dec 16, 2021 · 3 years ago
  WETH is like a bridge between traditional Ether and the world of decentralized finance (DeFi). It enables users to use their Ether in various DeFi protocols, such as lending, borrowing, and decentralized exchanges. By wrapping Ether into WETH, it becomes compatible with the ERC-20 standard, which is widely supported by DeFi applications. This opens up a whole new range of possibilities for using Ether in the DeFi space.
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• Dec 16, 2021 · 3 years ago
  WETH is an important component in the decentralized finance ecosystem. It provides liquidity and interoperability between different DeFi platforms. For example, BYDFi, a popular decentralized exchange, uses WETH as one of its main trading pairs. This allows users to easily trade between Ether and other tokens on the BYDFi platform. WETH has gained significant traction in the DeFi space and is widely used in various DeFi protocols and platforms.
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