If you use ETHereum, most tokens you trade and invest with are likely to use the ERC-20 token standard. Using this technical standard has become a popular option for Decentralized Applications, wallets, and projects as it offers practicality to most users. However, this fact has presented a problem for Ethereum's native coin, Ether.
ETHer doesn't follow the same rules as ERC-20 tokens, but there is a demand to use it in ERC-20 DApps too. Wrapped Ether is the solution to this problem, and you may have already come across it. Let's explore what it is and how to get WETH.
What is Wrapped ETH
Wrapped ETHer (WETH) is an ERC-20 token on Ethereum pegged to the price of Ether (ETH). While Ethereum's native token ETH can be used to pay gas fees, WETH cannot. However, WETH has a wider range of use cases than ETH and is very popular in the Decentralized Finance (DeFi) ecosystem. MetaMask, TrustWallet, and pretty much any wallet in the Ethereum network supports WETH.
Why is There a Need to Wrap ETH?
At first, it might seem confusing why we have a token like WETH. The first thing to understand is that not every token on Ethereum is technically alike. The network allows developers to create new rules and standards for cryptocurrencies.
One example would be the ERC-721 format that gives us Non-Fungible Tokens (NFTs). These act very differently from ETHer or ERC-20 tokens. Developers have a lot of room for customization when creating these digital assets. So while ETH can be used to pay for gas fees on Ethereum, ETH can't be used in every DApp.
Most DeFi DApps nowadays accept ERC-20 tokens for investment and staking opportunities. If we want to add ETH to a liquidity pool or use it as collateral, it's much easier to have it in an ERC-20 version. This provides the most compatibility across the blockchain and saves time developing new smart contracts.
How to Get WETH
The process of minting WETH is simple - you send your ETH to a smart contract that then provides WETH in return. This means that all WETH created is backed up completely by ETH reserves. Your ETH is locked in the smart contract and can be exchanged back at any time for WETH. When your ETH is returned, the contract burns the supplied WETH.
To wrap ETHer, you can interact directly with the WETH smart contract, so that it takes your ETH and credits your wallet with WETH at a 1:1 ratio (you still have to pay for transaction fees). Converting back requires another smart contract interaction, but the process is pretty much the same.
However, it's much easier to swap another token for WETH using a crypto exchange. Let’s see how you can swap your ETH for WETH using the Uniswap DEX or directly through your Metamask wallet.
How to Get WETH on Uniswap
1. Open Uniswap and connect your wallet. Make sure ETHereum is also selected as your network.
2. Select ETH in the top field and WETH in the bottom. If you click [Select a token], you should see WETH above the list.
3. Input the amount of ETH you want to convert to WETH and click the [Swap] button.
4. You’ll now need to confirm the transaction in your crypto wallet. Don’t forget that you’ll also need to pay gas fees, so make sure to have extra ETH at hand. Check the details of the transaction and click [Confirm].
5. Now you just need to wait for the transaction to be confirmed in the blockchain. The waiting time will depend on the current network traffic. If you are in a hurry, you can speed up the transaction (i.e., pay higher fees) to have it confirmed faster.
How to Get WETH on MetaMask
1. Open your MetaMask wallet and make sure your network is [ETHereum Mainnet]. Next, click [Swap].
2. In the [Swap to] field, search for WETH.
3. Input the amount of ETH you want to swap and click [Review Swap].
4. You’ll now see a quote showing the conversion rate (which should be 1:1). Click [Swap] to finalize your transaction.
Closing Thoughts
ETHereum has one of the oldest and most developed DApp ecosystems out there. This makes WETH a necessity, as many ETH holders want to use their ETH in DeFi projects. Given that you now know how to get WETH, if you do decide to start experimenting with WETH, we recommend buying it with ETH or other tokens as it’s simpler and more convenient than interacting with the wrapping smart contracts.
