Wrapped Ether is a tokenized form of ETH that provides the standard ERC-20 functions used by many DeFi contracts. Native ETH is Ethereum's currency, but it is not itself an ERC-20 token. Wrapping lets applications handle ether through familiar token balances, transfers, and spending approvals.
Depositing and withdrawing ether
In the conventional WETH9 model, depositing 1 ETH credits 1 WETH, and withdrawing 1 WETH reduces that token balance and releases 1 ETH. Network transaction fees are separate from this one-for-one accounting. Wrapping does not itself generate yield or change exposure to ether's price.
A holder can use WETH in compatible exchange pools, lending contracts, or NFT offers. Unwrapping returns native ETH through the wrapper's withdrawal function. Simply transferring WETH to its token contract is not the same operation and can leave tokens inaccessible.
Check the token and network
Ethereum network fees are denominated in native ETH. WETH does not automatically replace the ETH needed for an ordinary self-funded transaction, although applications may arrange fee payment differently.
Tokens called WETH on different networks can have different contracts and backing arrangements. A bridged representation adds dependencies beyond a local ETH wrapper. The ticker alone does not verify authenticity, redemption access, or the safety of a contract receiving spending approval.