wETH Explained: What It Is, How It Works, and Why It Matters in Crypto

When you hear wETH, wrapped Ether, a version of Ethereum formatted as an ERC-20 token to work inside DeFi protocols. Also known as wrapped Ether, it lets you use ETH in smart contracts that only accept ERC-20 tokens—something native ETH can’t do on its own. Think of it like putting a USB drive into a USB-C adapter. The data is still the same, but now it fits where it couldn’t before. wETH isn’t a new coin. It’s just ETH with a different wrapper.

Why does this matter? Because most DeFi apps—like lending platforms, DEXs, and yield farms—are built to handle ERC-20, a technical standard for tokens on Ethereum that defines how they interact with wallets and contracts tokens, not native ETH. You can’t deposit ETH directly into Uniswap or Aave without converting it to wETH first. That’s where wrapping comes in. You send ETH to a smart contract, and it gives you back an equal amount of wETH. To get ETH back, you unwrap it. No fees, no loss, no magic—just a simple swap.

People use wETH to trade, stake, and earn in DeFi without having to switch chains or use complicated workarounds. It’s the bridge between Ethereum’s native currency and the thousands of DeFi tools built on top of it. You’ll see wETH in DeFi, a system of financial apps built on blockchain that operate without banks or middlemen platforms like Curve, SushiSwap, and Lido. Even NFT marketplaces use it for payments because it’s easier to process than ETH.

There’s no mining, no staking rewards, and no extra value in wETH. It’s always worth exactly 1 ETH. If you see a site offering "free wETH" or "high APY on wETH," it’s a scam. The only way to get wETH is by wrapping ETH, and the only way to get ETH back is by unwrapping wETH. No middleman, no hype, no tricks.

Some users get confused because wETH looks like any other token in their wallet—same balance, same address format. But unlike tokens like USDC or LINK, wETH doesn’t have a team, roadmap, or community. It’s a tool, not a project. Its only job is to make ETH compatible with DeFi. That’s why you won’t find wETH in airdrop lists or coin rankings. It doesn’t need them.

As Ethereum keeps evolving, wETH stays simple. It doesn’t change. It doesn’t upgrade. It just works. Whether you’re swapping tokens, adding liquidity, or buying an NFT, you’ll likely interact with wETH without even noticing. That’s how good it is.

Below, you’ll find real breakdowns of tokens, exchanges, and DeFi tools that rely on wETH—what works, what doesn’t, and what to avoid. No fluff. Just facts from people who’ve used them.