Definition
WETH (Wrapped Ether) is a tokenized representation of ETH that conforms to the ERC‑20 standard on Ethereum and compatible networks. It is an asset designed so Ether can be treated like any other ERC‑20 token in smart contracts, liquidity pools, and other on‑chain systems that require a uniform token interface. WETH is intended to maintain a 1:1 value correspondence with ETH.
In Simple Terms
WETH is a version of Ether that is packaged into a standard token format used by many Ethereum applications. It is meant to always be worth the same amount as normal ETH, but it follows the same technical rules as other ERC‑20 tokens so it can fit smoothly into token‑based systems.
Context and Usage
WETH is commonly referenced in decentralized exchanges, automated market makers, NFT marketplaces, and other Ethereum‑based protocols that operate primarily with ERC‑20 tokens. It appears in trading pairs, liquidity pools, and on‑chain accounting where a standardized token form of Ether is required. WETH also serves as a base asset in many DeFi ecosystems and cross‑application integrations.