Wrapped eETH

price
change

Discover Wrapped eETH's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Wrapped eETH?

Wrapped eETH (weETH) is a cryptocurrency that represents staked Ethereum with a constant token balance. It is a wrapped, non-rebasing ERC-20 version of eETH, which is a rebasing ERC-20 liquid staking token. weETH allows users to maintain a fixed balance, making it suitable for DeFi protocols that require fixed balances. It is pegged to eETH through a share system, reflecting the owner's stake and accrued rewards, and enables users to earn native ETH staking rewards and EigenLayer Rewards while participating in other DeFi protocols.

How is Wrapped eETH used?

Wrapped eETH (weETH) is a wrapped, non-rebasing ERC-20 version of eETH, a rebasing ERC-20 liquid staking token. It allows users to gain native ETH staking rewards and EigenLayer Rewards while participating in other DeFi protocols on Ethereum and compatible Layer 2 networks. Users can mint eETH on ether.fi and then wrap it to weETH, which no longer experiences automatic balance adjustments and becomes a reward-bearing token. This enables users to maximize rewards and maintain composability for use in DeFi protocols.

How do I store Wrapped eETH?

To store Wrapped eETH (weETH) tokens, you can follow these steps:

  1. Add weETH to Your MetaMask Wallet:

    • Go to CoinMarketCap's website and search for Wrapped eETH (weETH).
    • Under the contract section, find the available networks where you can add weETH.
    • Switch your network to the correct one (e.g., Ethereum, Polygon, Arbitrum) before adding the token.
    • Click on the fox icon to immediately add weETH to your MetaMask wallet.
  2. Use Etherscan:

    • Visit Etherscan and search for Wrapped eETH (weETH).
    • You can view the token tracker and market information.
    • You can also use Etherscan to manage your weETH tokens.
  3. Use a Digital Asset Platform:

  • Platforms like Bullish provide information on weETH and allow you to manage your tokens.
  • You can use these platforms to store and manage your weETH tokens.
  1. Use a Hardware Wallet:
    • For added security, consider using a hardware wallet like Ledger or Trezor.
    • These wallets support various tokens, including weETH, and provide an offline storage solution.

Remember to always follow best practices for securing your digital assets, such as using strong passwords and keeping your wallet software up to date.

How to buy Wrapped eETH?

Wrapped Ether (WETH) is a token that represents Ether (ETH) on the Ethereum blockchain. It is used to make offers to buy or bid on NFTs. Here's how you can buy WETH tokens:

Through Centralized Exchanges
  1. Kraken: Create a free account on Kraken, connect a funding method, and buy WETH directly on their crypto exchange.
  2. KuCoin: Although KuCoin does not currently support WETH, you can follow their guide to find other reliable centralized exchanges that do support WETH purchases.
Using a Crypto Wallet
  1. MetaMask: Add WETH to your MetaMask wallet by clicking on the "Tokens" tab, then "Import tokens," and searching for "Wrapped Ether (WETH)".
  2. Trust Wallet: Download the Trust Wallet app, set it up, and connect it to a decentralized exchange (DEX) that supports WETH. Trade your ETH for WETH on the DEX.
Hardware Wallets
  1. Ledger: Buy a Ledger hardware wallet, set it up, and use the Ledger Live app to manage and buy WETH securely.
Decentralized Exchanges
  1. 1inch: Use a DEX like 1inch to trade your ETH for WETH. Ensure you have the correct smart contract address to avoid scams.

Remember to always follow security best practices and be cautious of scams when interacting with blockchain transactions.

Discover
Wrapped eETH
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

History of Wrapped eETH

Wrapped eETH (WEETH) is a cryptocurrency that was launched in 2023. It operates on the Ethereum platform and is designed to be compatible with various DeFi protocols. WEETH is a wrapped version of eETH, which is a derivative of Ethereum's native cryptocurrency, ETH.

The history of WEETH is closely tied to the development of ether.fi, a decentralized, non-custodial liquid staking protocol for Ethereum. ether.fi was founded in 2022 by Mike Silagadze and Rok Kopp, with the goal of creating a protocol that allows stakers to retain control of their keys while delegating validator operations to node operators.

On May 3, 2023, ether.fi launched its mainnet, which included delegated staking of ETH to whitelisted validators. Later, on November 15, 2023, eETH fully launched, allowing anyone to mint eETH for ETH at a 1:1 ratio. This marked a significant milestone in the development of WEETH, as it enabled users to convert eETH into WEETH, ensuring a constant token balance suitable for DeFi protocols.

WEETH is a wrapped non-rebasing ERC-20 version of eETH, which means it does not automatically adjust its balance in response to deposits. Instead, the value of WEETH is tied to eETH through a share system reflecting the owner's stake and accrued rewards. This allows users to earn native ETH staking rewards, EigenLayer Rewards, and engage in other DeFi protocols.

Today, WEETH continues to operate as a utility token, enabling users to participate in various DeFi protocols and earn rewards. Its price is tracked on various platforms, with a current total supply of 1,443,248.5192051 WEETH tokens.

Discover
Wrapped eETH
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

How Wrapped eETH works

Wrapped Ethereum (WETH) is a tokenized version of Ether (ETH) that allows it to be used on decentralized applications (dApps) and other blockchains. Here's how it works:

Wrapping ETH

To wrap ETH, you need to send your Ether to a smart contract. This smart contract will then generate WETH in return, which is an ERC-20 token. The original ETH is locked up in the smart contract, ensuring that the value of WETH remains pegged to the value of ETH on a 1:1 ratio.

Using WETH

WETH can be used on various blockchains and decentralized applications where Ether itself cannot be used directly. This is because Ether does not follow the ERC-20 standard, which is necessary for interoperability with other tokens on the Ethereum blockchain. WETH, being ERC-20 compatible, can be exchanged for other ERC-20 tokens on DeFi applications and used as collateral on lending platforms.

Unwrapping WETH

To unwrap WETH, you can use the same smart contract that generated the WETH. You simply need to send the WETH back to the contract, and it will return the original ETH. This process is similar to how stablecoins work, where a stablecoin can be redeemed for its underlying fiat currency.

Risks and Limitations

Wrapped tokens like WETH rely on custodians, which can be a central point of failure. There is a risk of hacking or manipulation by these custodians, which could undermine the decentralized nature of blockchain technology. Additionally, not all blockchains can wrap every token, and the process of wrapping and unwrapping involves additional steps and risks.

Benefits

WETH increases the interoperability of Ether, allowing it to be used on multiple blockchains and decentralized applications. This enhances liquidity and capital efficiency, making it easier for investors to diversify their investments and use their assets more flexibly. WETH also helps to avoid high gas fees on the Ethereum blockchain by allowing users to trade Ether on other chains with lower fees.

In summary, Wrapped Ethereum (WETH) is a tokenized version of Ether that allows it to be used on various blockchains and decentralized applications. It is generated by sending ETH to a smart contract and can be unwrapped back into ETH at any time. While it offers several benefits, it also involves additional risks and limitations due to its reliance on custodians.

Discover
Wrapped eETH
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Wrapped eETH's strengths

Wrapped eETH (WEETH) has several strengths that make it a valuable asset in the DeFi ecosystem:

  1. Compatibility with DeFi Protocols: WEETH is designed to be compatible with DeFi protocols that require fixed balances, making it a versatile token for users who want to participate in various decentralized finance applications.

  2. Constant Token Balance: Unlike eETH, which is a rebasing token that automatically adjusts its balance in response to staking rewards, WEETH maintains a constant token balance. This feature allows users to maintain a stable balance while still earning staking rewards.

  3. Native ETH Staking Rewards and EigenLayer Rewards: Holding WEETH enables users to earn both native ETH staking rewards and EigenLayer Rewards, providing additional income streams.

  1. Participation in Multiple Protocols: WEETH allows users to participate in various DeFi protocols on Ethereum and compatible Layer 2 (L2) networks, expanding their earning opportunities.

  2. Control and Custody: With ether.fi, the staker controls their keys and retains custody of their ETH, reducing risks associated with centralized staking services.

  3. Flexibility and Liquidity: WEETH can be swapped or unstaked at any time, providing users with the flexibility to manage their assets as needed.

These strengths make WEETH an attractive option for users who want to maximize their staking rewards while maintaining control over their assets and participating in various DeFi protocols.

Wrapped eETH's risks

Wrapped eETH (WEETH) carries several risks, including:

  1. Counterparty Risk: The entities responsible for managing the underlying collateral assets may fail to perform their duties, leading to potential losses.

  2. Centralization Risk: WEETH may be issued by a single central authority, which can undermine the decentralization principles of blockchain technology.

  3. Regulatory Risks: New laws or regulations may restrict or prohibit WEETH, its issuance, trading, or redemption, affecting its value and usability.

  1. Technical Risks: Smart contract bugs, hacking attempts, network congestion, or other technical issues can impact WEETH and the blockchains it trades on.

  2. Custodial Risks: The involvement of custodians in wrapping and unwrapping WEETH can lead to risks of hacking and loss of assets.

  3. Interoperability Risks: WEETH's reliance on third-party platforms and smart contracts for wrapping and unwrapping can create vulnerabilities and potential points of failure.

These risks highlight the importance of understanding how WEETH works and the potential pitfalls associated with its use.

Discover
Wrapped eETH
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Did Wrapped eETH raise funds?

Discover
Wrapped eETH
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Wrapped eETH’s team

  • Wrapped eETH (weETH) Team: The team behind Wrapped eETH (weETH) is the Ether.fi team.

Whalee AI

The fundamental analysis assistant for crypto value investors.

Wrapped eETH NEWS REPORT

Latest news

Want an analysis of Wrapped eETH? Tell us on discord.

Help us improve!
Tell us what you think of this page and which features you would like to see next.
OPEN FORM