What exactly is WETH? Why is everyone using it in DeFi?

If you’ve played around with DeFi, you’ve definitely seen something called WETH. Simply put: WETH is ETH “wrapped” into the ERC-20 format.

Why wrap ETH?

This is a pretty interesting question. Even though ETH is Ethereum’s native coin, it doesn’t actually conform to the ERC-20 standard. Most DeFi protocols, DEX trading pairs, and smart contracts can only work with ERC-20 tokens. So someone came up with a solution—wrap ETH into WETH, so it can flow freely throughout the DeFi ecosystem.

It’s like needing a membership card to get into a club. ETH is cash, WETH is the membership card. They’re equivalent, but one is accepted everywhere, the other isn’t.

How does the conversion work?

It’s very simple:

• ETH → WETH: Send ETH to the WETH smart contract, instantly receive an equal amount of WETH
• WETH → ETH: Burn WETH, and the smart contract returns an equal amount of ETH

The price is always 1:1 because they’re essentially the same thing, just in different formats.

What’s WETH used for?

1. Complete trading pairs: On DEXs like Uniswap or SushiSwap, most trading pairs are based on ERC-20 tokens. Using WETH lets you participate directly.
2. DeFi strategy combinations: Liquidity mining, lending, derivatives—all these complex operations require the ERC-20 standard, and WETH plugs right in.
3. Convenience: No need to design a special mechanism for every trading pair. WETH unifies everything.

How to get WETH?

• Swap directly on a DEX (MetaMask, Uniswap, etc.)
• One-click conversion in your wallet (Trust Wallet supports this)
• Interact directly with the WETH smart contract

Core logic: It’s not some mysterious thing, it’s just a format adapter. Whatever ETH can do, WETH can do, and vice versa. If you’re active in DeFi, WETH is basically a must-have.