Wrapped Ethereum, or WETH, is an ERC-20 token that represents Ether (ETH) within the Ethereum blockchain. It is designed to enhance the functionality of ETH by making it compatible with smart contracts and DApps that require ERC-20 tokens. The creation of WETH involves depositing ETH into a specific smart contract, which retains an equivalent amount of WETH, enabling its use within the Ethereum network. This facilitates ETH trading on decentralized exchanges (DEXs) that only support ERC-20 tokens, and allows for its easier integration into smart contracts. Championed by Will Warren, co-founder of 0x, WETH plays a pivotal role in enhancing liquidity and flexibility within the Ethereum ecosystem.
