Entity: WETH
Wrapped Ether (WETH) is an ERC-20 token representing Ether at a 1:1 ratio, allowing users to trade ETH to ERC-20 tokens on decentralized platforms.
WETH
Etymology
The term 'WETH' is derived from 'Wrapped Ether', representing Ether tokenized as an ERC-20 token.
Definition
WETH is an ERC-20 token that mirrors the value of Ether at a 1:1 ratio, enabling seamless interoperability with decentralized applications and decentralized exchanges.
Historical Context
WETH emerged as a crucial component in the DeFi ecosystem, providing liquidity and enabling efficient trading of Ether on decentralized platforms.
Cultural Significance
WETH plays a vital role in enabling the exchange of Ether for other ERC-20 tokens, fostering liquidity and accessibility in the decentralized finance space.
Related Concepts
- ERC-20 tokens
- Decentralized Finance (DeFi)
See Also
A tokenized version of Ether on the Ethereum blockchain, enabling seamless interaction with decentralized applications and facilitating trading on decentralized exchanges.