WETH/wETH

Wrapped Ethereum (WETH) is the Ethereum blockchain’s main token (Ether) converted into the Ethereum ERC-20 format so it can be exchanged with other ERC-20 tokens. Ether is not natively compatible with the Ethereum ERC-20 token standard so it must be wrapped in order to be used on Decentralized Exchanges (DEXs) such as Uniswap. For example, if an NFT collector was interested in purchasing NFT crypto artwork from an NFT marketplace using Ether (ETH), they would first need to exchange their Ether (ETH) for the ERC-20 version called Wrapped Ethereum (WETH). Wrapping cryptocurrencies such as Ethereum’s native token Ether (ETH) helps increase blockchain Interoperability. Wrapped Ethereum (WETH) is created by exchanging Ether (Eth) for Wrapped Ethereum (WETH) and requires a custodian to hold the Ether deposit as Collateral. In this scenario, the custodian can be any number of parties including merchants, smart contract owners, or a DEX.