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Wrapped Ether (wETH) is a tokenized version of Ether (ETH) that is compatible with the ERC-20 token standard on the Ethereum blockchain. While ETH is the native currency of the Ethereum network, it does not conform to the ERC-20 standard, which is used by most tokens on Ethereum. Wrapping Ether into wETH allows it to be used seamlessly in decentralized finance (DeFi) applications, decentralized exchanges (DEXs), and other protocols that require ERC-20 tokens. Like wrapped Bitcoin (wBTC), wETH maintains a 1:1 peg with ETH, ensuring that the value of wETH is always equivalent to that of ETH.
The wrapping process involves locking ETH into a smart contract and issuing an equivalent amount of wETH, which can then be used in various DeFi applications. This tokenization of Ether makes it easier to interact with protocols that require ERC-20 tokens, enabling users to trade, lend, and borrow wETH alongside other tokens in the Ethereum ecosystem. When users want to convert wETH back into ETH, they can simply unwrap the token through the same smart contract, releasing the original ETH in exchange for burning the wETH.
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On Plena Wallet, users can easily buy Wrapped Ether (WETH), which represents Ether (ETH) in a tokenized form that complies with the ERC-20 standard. This allows users to utilize their WETH in decentralized finance (DeFi) applications, such as staking, swapping, or liquidity provisioning on blockchains like Polygon and BNB Chain. Plena Wallet simplifies managing WETH, giving users access to various DeFi services while maintaining the value equivalent to Ether in a more versatile format.
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