Tokenization Development Tutorials, Guides & Insights
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Tutorial
ETH vs WETH: Understanding the Difference and Their Roles in Ethereum
- Users can simply exchange ETH for WETH by interacting with the platform's smart contract, which handles the wrapping/unwrapping process automatically.
- Decentralized Exchanges (DEXs): Many decentralized exchanges (like Uniswap) require ERC-20 tokens for trading. WETH allows ETH holders to trade ETH just like any other ERC-20 token.
- DeFi Lending Platforms: Platforms such as Aave or Compound often require collateral in the form of ERC-20 tokens, making WETH essential for ETH holders who want to participate.
- Token Swaps: WETH allows for seamless token swaps between ETH and other ERC-20 tokens on platforms that support such swaps.
Oct 24, 2024
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