Course Content
​​What Is Wrapped Ether (WETH) and How to Wrap It?
Wrapped Ether (WETH) is a token pegged to Ether (ETH). WETH is used in several platforms and DApps that support ERC-20 tokens. While ETH is used to pay for network transaction fees, it doesn't have the same functionality as ERC-20 tokens. You can easily convert ETH into WETH through a process known as wrapping. You can also convert WETH back into ETH at any time. Both wrapping and unwrapping follow a 1:1 ratio, meaning there are no extra costs apart from transaction fees. You can wrap your ETH manually by interacting with the WETH smart contract, which will store your ETH and give you back the exact same amount of WETH. Ethereum's DeFi ecosystem is large, and using WETH provides more opportunities for staking and investing. There are many versions of WETH, but some are more popular than others. You can even find wrapped ETH on other blockchains to use in their ecosystems. Popular uses for WETH include NFTs trading, providing liquidity to liquidity pools, and crypto lending.
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​​What Is Wrapped Ether (WETH) and How to Wrap It?
About Lesson
At first, it might seem confusing why we have a token like WETH. Don’t we already have ETH on the Ethereum blockchain anyway? 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.

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