WETH, or Wrapped Ether, is an ERC-20 token that represents Ether (ETH) on the Ethereum blockchain. Since ETH is not an ERC-20 token, it cannot interact directly with applications that only accept ERC-20 tokens. WETH solves this compatibility issue.When users want to convert ETH to WETH, they essentially “wrap” their Ether by sending it to a smart contract. In return, an equal amount of WETH is minted. This process maintains a 1:1 peg, meaning one WETH is always equivalent to one ETH.WETH can be used in various decentralized applications (dApps) for trading, lending, and liquidity pools, allowing holders to take advantage of Ethereum’s full functionality. Users can also unwrap WETH back into ETH whenever they choose. This flexibility makes WETH an important asset in the Ethereum ecosystem, facilitating higher interoperability among tokens and dApps.