Wrapped Ether (WETH)
Wrapped Ether (WETH) is a wrapped token on Multi-chain. ERC-20 wrapped ETH used as DeFi collateral and trading pair base.
Last updated
At a glance
| Type / category | Wrapped |
|---|---|
| Chain | Multi-chain |
| Symbol | WETH |
| Related protocol | — |
| As-of date |
Market data
snapshot —- Price
- —
- Type
- Wrapped
- Chain
- Multi-chain
Price is fetched live from DeFiLlama when this page loads. It is a market reference, not a quote — verify on-chain before transacting.
ERC-20 wrapped ETH used as DeFi collateral and trading pair base.
How WETH works
WETH is a wrapped asset — a token that represents another asset one-for-one so that it can be used somewhere the original cannot. The underlying is locked, an equivalent amount of WETH is issued, and burning the wrapper releases the original.
Wrapping exists because of interface and location mismatches. Ether predates the ERC-20 standard and does not implement it, so contracts expecting a standard token need a wrapped version. Assets native to another chain have no representation on this one at all, so a custodian or a bridge holds the original and issues a claim. Those two cases carry very different risk: a wrapper contract on the same chain is close to trustless, while a cross-chain wrapper is only as sound as whoever holds the reserves.
How WETH accrues value
- WETH has no yield of its own. It tracks the underlying asset one-for-one and captures whatever that asset does.
- Any return comes from what you do with it — supplying it to a lending market, providing liquidity, or using it as collateral.
- The wrapper can trade slightly off peg when minting or redemption is congested, restricted, or reliant on a bridge.
- For cross-chain wrappers, the reserves are the asset. Proof-of-reserve attestations are worth checking before treating the wrapper as equivalent to the original.
Key risks for WETH holders
- Custodial or bridge risk where the underlying is held off-chain or on another chain — the wrapper is only as good as the reserves.
- Peg risk if minting or redemption is paused, congested or restricted.
- Contract risk in the wrapper itself.
- Fragmented liquidity, since the same asset may have several competing wrapped representations.
- Smart contract risk — a bug or exploit in the issuing contracts can cause permanent loss, and audits reduce that risk without eliminating it.
- Market risk — crypto assets are volatile and can fall sharply and quickly.