Wrapped Ether (Optimism)

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
Good
$3,801.19
5.36%
What is Wrapped Ether (Optimism)?
What we like
ETH is the most liquid asset deployed across the multichain. Wrapped ETH (WETH) is a DeFi-compatible version of ETH.
What we like less
ETH transferred through the Optimism bridge requires more trust assumptions as the bridge depends on a centralized sequencer who can control the ordering of transactions.
What it means for you
Users holding ETH benefit from its fee generation and deflationary mechanisms, as well as its broad support across DeFi including lending, market making and staking.

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Information
Blockchain
  • Optimism
Info
Key Metrics
  • Market Cap: $10.4B
  • Fully Diluted Valluation: $10.4B
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #8
  • Circulating Supply: 2,733,513
  • Total Supply: 2,735,255
  • Volume (24H): $1.3B
  • ATH: $4,799.89 (11/09/2021)
  • ATL: $82.10 (12/15/2018)
Risk Assessment
Good
Asset Strength

Wrapped ETH is a large-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Optimism bridge, a protocol rated as Best.

Dependencies
Asset Tokenomics

Wrapped ETH has an uncapped supply but has inflation control or burn mechanisms in place. ETH on Optimism is backed 1:1 by ETH locked in the Optimism bridge protocol on the Ethereum chain. 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.

Things to know about WETH

What is the difference between Ether and Ethereum?

Ether (ETH) 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 Proof-of-Stake and changes to its monetary policy (EIP-1559), ETH now better competes 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, users can stake their ETH to become a validator to help secure the network in exchange for block rewards and transaction fees.

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WETH Pools
Moonwell ETH Lending
2.3%
Yield
$4M
TVL
Risk
B
Protocol
Moonwell
Chain
Optimism
Velodrome ETH Market Making
9.2%
Yield
$4M
TVL
Risk
C
Protocol
Velodrome
Chain
Optimism
Aura ETH Market Making
2.7%
Yield
$3M
TVL
Risk
C
Protocol
Aura
Chain
Optimism
Yearn ETH Market Making
8%
Yield
$2M
TVL
Risk
D
Protocol
Yearn V2
Chain
Optimism
Velodrome OP-ETH Market Making
11.8%
Yield
$2M
TVL
Risk
B
Protocol
Velodrome
Chain
Optimism
Aura ETH Market Making
7.1%
Yield
$2M
TVL
Risk
C
Protocol
Aura
Chain
Optimism
Gamma BTC-ETH Market Making
19.6%
Yield
$717K
TVL
Risk
C
Protocol
Gamma
Chain
Optimism
Yearn ETH-USD Market Making
4.6%
Yield
$18K
TVL
Risk
C
Protocol
Yearn V2
Chain
Optimism

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