As discussed, wrapping is usually only carried out using central programs, thus the concern for possible manipulation and abuse. Ethereum co-creator Vitalik Buterin himself pinpointed one of the main disadvantages of wrapped assets. According to Buterin, the main problem with many of these wrapped assets is their sensitivity to centralization. The same goes for swapping wETH back to ETH, which can be done by using Uniswap or MetaMask. The process for unwrapping is essentially the same as the process outlined above for wrapping ETH on both platforms.
With the increasing adoption of DeFi and the widespread use of wETH, the potential for https://cryptolisting.org/coin/weths to become major players in the DeFi space is high. Anyone can deposit ETH into the WETH smart contract, the smart contract then creates and returns the same amount of WETH. Deposit WETH into the contract, and it will destroy the WETH and return an equal amount of ETH. No one controls the smart contract, and the smart contract ensures any WETH created backed by an equivalent amount of ETH. This makes WETH almost indistinguishable from ETH in terms of market price. They can also help facilitate cross-chain atomic swaps, which are becoming increasingly popular.
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Traders who use the Ethereum network are familiar with the ERC-20 technical standard and have most likely traded and invested in tokens that utilize it. After all, its practicality, transparency and flexibility have made it the industry norm for Ethereum-based projects. In this guide, we will outline the safest way to add Wrapped Ethereum (WETH) to your MetaMask Wallet.
Is Weth the same as Ethereum?
Ethereum (ETH) and Wrapped Ethereum (WETH) are two different types of Ethereum tokens. ETH is the original token created on the Ethereum blockchain, while WETH is an ERC-20 token created to make it easier to trade ETH or convert it into other cryptocurrencies.
If you have ever used a decentralized exchange (DEX), there’s a good chance you’ve seen ‘WETH’ as one of the popular cryptocurrencies you can swap. Ether (ETH) is the native cryptocurrency to the Ethereum blockchain, which is the oldest and most popular blockchain with general purpose smart contracts. In this article we go into more detail about what exactly WETH is, and why there is a need for it. Better interoperability solutions are on the horizon, such as updating blockchains’ codebases to be compatible with each other or using bridge chains. For Ethereum, at least, the plan is to eventually phase out the use of wrapped tokens like wETH alongside network developments. Issued wrapped tokens depend on the third-party platforms that issue them, inevitably subjecting decisions pertaining to wrapped assets to central entities.
Contract Address
WETH can also be used on platforms like OpenSea to buy and sell through auctions. Bitcoin also has a wrapped version called Wrapped Bitcoin, which has the same value as Bitcoin. If you are new to crypto, use the Crypto.com University and our Help Center to learn how to start buying Bitcoin, Ethereum, and other cryptocurrencies. The token page shows information such as price, total supply, holders, transfers and social links. Learn the basics of the Ethereum token standard, what ERC-20 tokens are used for, and how they work. In short, it’s not really a matter of ETH vs. wETH since wrapping Ethereum is more of a workaround than a permanent solution.
It is a way to calculate interest earned on an investment that includes the effects of compound interest. Derivatives like perpetual futures and options are used in crypto a lot these days.
wETH Value
To check WETH’s price live in the fiat currency of your choice, you can use Crypto.com’s converter feature in the top-right corner of this page. WETH’s price today is US$1,736.02, with a 24-hour trading volume of $1.56 B. Opt-in, make your first trade on Exchange Plus & receive random crypto rewards from 10,000 SHIB, to 0.01 BTC.
- In order to bridge this gap and enable the exchange of Ether for ERC-20 tokens (and vice versa), the Ethereum network introduced wrapped Ethereum (wETH).
- As discussed, wrapping is usually only carried out using central programs, thus the concern for possible manipulation and abuse.
- This provides an opportunity for wETH holders to earn passive income while also supporting the growth and adoption of DeFi applications that use wETH.
- WETH’s price today is US$1,736.02, with a 24-hour trading volume of $1.56 B.
The wETH will bear a pink Ethereum diamond as its logo, distinguishing it from ETH. In this example, we’ll be using the OpenSea platform to convert ETH to wETH using the wETH smart contract. The WETH price page is just one in Crypto.com Price Index that features price history, price ticker, market cap, and live charts for the top cryptocurrencies. Also, if you are interested in long-term investing, you can activate the auto-replay feature, and your dual will automatically start when the staking period ends. This will save you gas, simplify the passive income process, and increase your earnings. Currently, wrapping assets are not Turing-complete and cannot be automated via the Ethereum blockchain.
Contract Overview
Meanwhile, ETH is locked to ensure that the wETH is backed by a reserve. Briefly put, ERC-20 tokens can only be traded with other ERC-20 tokens, not Ether. In order to bridge this gap and enable the exchange of Ether for ERC-20 tokens (and vice versa), the Ethereum network introduced wrapped Ethereum (wETH). As mentioned above, the best way to add Wrapped Ethereum (WETH) to your MetaMask Wallet is through Coingecko.
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What is weth in Ronin wallet?
Wrapped Ethereum (WETH), Axie Infinity (AXS), and Smooth Love Potion (SLP) are the tokens that are used by the Play-to-earn game Axie Infinity. To play Axie Infinity, you need to connect your Ronin Wallet.