Background
ERC-20 is a widely adopted token standard on the Ethereum blockchain, used to implement interchangeable tokens in smart contracts, while the Ethereum native token "ETH" has some differences in its technical implementation compared to the ERC-20 standard. Since "ETH" is not an ERC-20 token, many Ethereum applications (especially decentralized exchanges and other smart contract-based applications) cannot directly handle ETH.
What is Wrapped Ether (WETH)#
"WETH" converts ETH into an ERC-20 token equivalent to ETH through a process called "wrapping." This allows ETH to be more flexibly used in various applications and protocols within the Ethereum ecosystem. Its introduction solves the compatibility issue between ETH and the ERC-20 standard, promoting interoperability and development within the Ethereum ecosystem.