Wrapped Ether (Ethereum)

WETH

WETH is a DeFi-compatible version of ETH. ETH is the native currency of the Ethereum chain used for gas fees and security.

Risk Rating
Best
$3,147.42
2.56%
Summary
What we like
WETH is a wrapped version of ETH that enables it to be more easily used within DeFi. The transition this September to a Proof-of-Stake (PoS) consensus mechanism is expected to bring with it drastic improvements in scalability, an increase in staking yield, lower carbon footprint, and reduced ETH supply.
What we like less
ETH faces increased competition from new alternative chains that provide greater scalability with lower transaction fees. The widely anticipated transition to ETH 2.0 also introduces several technical risks that could result in volatile price action around the anticipated merge date.
What it means for you
ETH represents one of the most liquid assets available to be used for lending, market making and staking.
Information
Blockchain
  • Ethereum
Info
Key Metrics
  • Fully Diluted Valluation: $9.7B
  • Total Supply: 3,071,354
  • Volume (24H): $1.6B
  • ATH: $4,863.70 (11/10/2021)
  • ATL: $0.00 (10/28/2020)
Risk Assessment
Best
Asset Strength

Wrapped ETH is a large-cap asset that represents the protocol`s native governance or utility token.

Asset Tokenomics

Wrapped ETH has an uncapped supply but has inflation control or burn mechanisms in place. ETH is "wrapped" to make it compatible with DeFi smart contracts. 1 Wrapped ETH is always equal to 1 ETH.

Asset Volatility

Wrapped ETH is highly correlated to the overall market.

Dependencies

Wrapped Ether (Ethereum) has no dependencies.

Things to know about WETH

What is the difference between Ether and Ethereum?

Ether can be thought of as the "fuel" or gas fee that powers the Ethereum network. Ethereum refers to the actual blockchain technology or smart contract platform that underpins Ether. Whenever you send ETH or use an Ethereum application, you must pay a fee in ETH to use the network. This fee acts as an incentive for a block producer to process and verify your transaction.

Why does Ether have intrinsic value?

Ether serves two main purposes: one as a gas fee to transact on the Ethereum network and second as a speculative store of value. Currently, Ethereum users pay the transaction fees in ETH and ETH holders bear the cost of inflation from miner block rewards. In the absence of speculation, ETH holders are betting that demand for ETH from users of decentralized applications (dApps) outpaces the rate of inflation via block rewards. The second purpose comes from its monetary premium as a non-sovereign store of value. With the transition to ETH 2.0 and recent changes to its monetary policy (EIP-1559), ETH is expected to better compete with BTC as a monetary asset given its scarcity, durability and censorship-resistant qualities.

What is Ether used for?

Ether is used within the Ethereum ecosystem to perform a range of functions, including its native use as a gas fee to transact on the network, use as collateral for DeFi lending applications (to be lent or borrowed), use as medium of exchange for alternative crypto assets and non-fungible tokens (NFTs), acceptance in select retailers and service providers, and lastly, earned as reward for completing bounties. Additionally, in ETH 2.0, users will also be able to lock their ETH by becoming a validator to help secure the network in exchange for block rewards and transaction fees.

WETH Pools
Uniswap PEPE-ETH Market Making
22.9%
Yield
$42M
TVL
Risk
B
Protocol
Uniswap V2
Chain
Ethereum
Uniswap BEAM-ETH Market Making
13.8%
Yield
$14M
TVL
Risk
A
Protocol
Uniswap V2
Chain
Ethereum
Uniswap BTC-ETH Market Making
1.2%
Yield
$13M
TVL
Risk
A
Protocol
Uniswap V2
Chain
Ethereum
Convex TriCrv Market Making
23.3%
Yield
$12M
TVL
Risk
C
Protocol
Convex
Chain
Ethereum
Aura ETH Market Making
6.1%
Yield
$12M
TVL
Risk
B
Protocol
Aura
Chain
Ethereum
Uniswap ETH Market Making
8.2%
Yield
$8M
TVL
Risk
A
Protocol
Uniswap V2
Chain
Ethereum
Uniswap MOG-ETH Market Making
45.1%
Yield
$8M
TVL
Risk
B
Protocol
Uniswap V2
Chain
Ethereum
Curve ETH Market Making
9.6%
Yield
$5M
TVL
Risk
C
Protocol
Curve
Chain
Ethereum
Aura AURA-ETH Market Making
38.7%
Yield
$4M
TVL
Risk
B
Protocol
Aura
Chain
Ethereum
Curve ETH Market Making
3.2%
Yield
$3M
TVL
Risk
B
Protocol
Curve
Chain
Ethereum