WETH serves as the tokenized or packaged version of
ETH, allowing you to conveniently make payments for transactions within
Ethereum decentralized applications (
dApps). Adhering to the ERC-20 token standards, WETH ensures seamless compatibility with other ERC-20 tokens, enhancing its versatility.
This provides added value to holders, empowering them to utilize WETH across different networks and dApps. With WETH, you can engage in activities such as staking, yield farming, lending, and contributing liquidity to various liquidity pools.
In contrast to ETH, which deviates from its ERC-20 standard, limiting its interoperability to the Ethereum chain, WETH stands out by being compatible with more cost-effective and high-throughput alternatives like
Binance,
Polygon,
Solana, and
Cardano.
Importantly, WETH maintains a 1:1 wrapping ratio with ETH, ensuring that its price remains identical to that of ETH. This makes WETH a reliable and seamless choice for navigating diverse blockchain ecosystems.