WETH is simply ETH wrapped in a smart contract to make it compatible with the ERC-20 token standard. Wrapping ETH into WETH enables users to interact with decentralized applications (dApps), decentralized exchanges (DEXs), and DeFi platforms that require ERC-20 tokens.
- ETH: The native asset of Ethereum, does not conform to any token standard.
- WETH: An ERC-20 token, designed to work seamlessly with Ethereum-based DeFi applications and smart contracts.