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WhiteSwap is a decentralized exchange platform that offers a secure and user-friendly environment for users to trade various digital assets. It is designed to provide fast and efficient trade execution, making it a popular choice among cryptocurrency traders and investors.
Ethereum and Wrapped Ethereum are twin cryptocurrencies that have almost the same value and name but different purposes. You may have heard that “wrapped coin” means a token represented on the Ethereum network on the ERC-20 standard. Then why create Wrapped Ethereum if ETH already uses its own blockchain? The fact is that the original ETH coin was created in 2013, and the ERC-20 standard was created only in 2017. That is, the original ETH does not comply with the ERC-20 standard, unlike WETH. This is why you often need to wrap and unwrap an Ethereum coin to use DeFi tools.
Swapping between Ethereum (ETH) and Wrapped Ethereum (WETH) is a common transaction in the world of decentralized finance (DeFi). Let’s see how to wrap and unwrap Ethereum using WhiteSwap decentralized exchange.
How to swap ETH for WETH/WETH for ETH
If Ethereum were originally designed as an ERC-20 token, we wouldn’t have to constantly wrap and unwrap it. But since the blockchain cannot be rolled back, to fix this, the ability to exchange one token for another through a liquidity pool was added. To swap ETH to WETH or WETH to ETH, you will need to access a DEX that supports the two tokens. Some popular options include WhiteSwap, Uniswap, and Sushiswap. Here are the general steps to follow.
- Connect your cryptocurrency wallet to the DEX or liquidity pool using a Web3 wallet. As for today, WhiteSwap supports MetaMask, WalletConnect, Coinbase Wallet, Fortmatic, and Portis.
- Select the token you want to swap and enter the amount of ETH (or WETH) you want to exchange.
- Check the exchange rate and estimated gas fees before submitting the transaction.
- Click “wrap” (or “unwrap”) to confirm the swap and wait for the transaction to be processed and confirmed on the blockchain.
Such a transaction will look the same as a regular swap between two ERC-20 tokens. Therefore, if you already have experience trading on the DEX, this will not cause you any difficulties.
Swap fees: ETH for WETH/WETH for ETH
DEXs and liquidity pools charge a fee for every swap transaction to compensate liquidity providers for the risk they take by providing liquidity to the platform. The fees are usually a percentage of the transaction amount and can vary from one platform to another.
Table of fees:
| Platform | Swap fee |
| WhiteSwap | 0.3% |
| Uniswap | 0.3% |
| Sushiswap | 0.3% |
| Balancer | between 0.0001% and 10% |
Tips for successful ETH for WETH and WETH for ETH swaps
To avoid errors and potential losses, consider the following tips before swapping ETH to WETH or WETH to ETH:
- Check the exchange rate and gas fees before submitting the transaction to ensure that you are getting the best deal.
- Confirm that you have selected the correct tokens and the correct amount to wrap or unwrap.
- Check the appropriate slippage tolerance to avoid failed transactions due to price fluctuations. Normal slippage tolerance on WhiteSwap is 0.5%, but wrapping WETH to ETH is always a 1:1 exchange with no slippage.
- Make sure that you have enough funds to cover the transaction fees. Just like any blockchain transaction, wrapping and unwrapping require gas fees.
Benefits of swapping ETH for WETH/WETH for ETH
Swapping ETH for WETH or WETH for ETH has no direct benefits, so it makes no sense to convert these tokens just for holding. However, it can offer various benefits for DeFi users and experienced traders, including:
Table of benefits:
| Benefits | Description |
| Increased liquidity | Converting ETH to WETH allows you to participate in DeFi protocols that require ERC-20 tokens, which increases your liquidity options. |
| Lower transaction fees | WETH transactions have lower gas fees compared to ETH transactions. |
| Easier trading | WETH is an ERC-20 token, which means it can be easily traded and transferred on the Ethereum network. |
Where to swap ETH for WETH/WETH for ETH
As mentioned before, you can swap ETH for WETH or WETH for ETH on several DEXs and liquidity pools, including:
- Whiteswap
- Uniswap
- Sushiswap
Use the direct link to the pair to convert your Ethereum tokens.
Is it safe to swap ETH for WETH or WETH for ETH?
Converting ETH to WETH or WETH to ETH is generally safe as long as you use reputable DEXs. The converting tool was designed by the Ethereum team, and these smart contracts have been field-tested many times. So there is no point in being afraid of it.
However, it’s important to note that there are risks associated with DeFi protocols, including fake DEXs and smart contract scams. Always do your research, choose reliable platforms, and double-check transactions in your wallet before confirming it.
Conclusion
Swapping ETH for WETH or WETH for ETH is a straightforward process that can offer several benefits, including increased liquidity, lower transaction fees, and easier trading. To ensure a successful swap, always double-check your transaction details and use reputable DEXs. Keep in mind that there are risks involved with DeFi protocols, so it’s essential to do your due diligence before investing. Additionally, be aware of the gas fees that are still associated with swapping and consider the benefits before making a decision.
Overall, swapping between ETH and WETH can provide flexibility and open up new opportunities for investors in the DeFi space.
FAQ
Wrapped Ethereum (WETH) is a tokenized version of Ethereum that is compatible with the ERC-20 standard. It is created by locking up ETH in a smart contract and issuing a corresponding amount of WETH. WETH can be easily traded and transferred on the Ethereum network, making it ideal for use in DeFi protocols.
There can be several reasons for it. For example, if you want to participate in a DeFi protocol requiring ERC-20 tokens, you must convert your ETH to WETH. Conversely, if you want to withdraw ETH from a DeFi protocol that only supports ERC-20 tokens, you would need to convert your WETH to ETH. Additionally, WETH transactions generally have lower gas fees compared to ETH transactions, which can be a cost-saving measure.
A decentralized exchange (DEX) is a platform that allows users to trade cryptocurrencies without the need for a central authority or intermediary. DEXs typically use smart contracts to automate the trading process and rely on liquidity providers to provide liquidity to the platform.
To connect your cryptocurrency wallet to a DEX, you will need to use a Web3 wallet like Metamask or Coinbase Wallet. These wallets allow you to connect to the Ethereum network and interact with DEXs and other DeFi protocols. By the way, some exchanges support several wallets and networks at once. For example, WhiteSwap also supports Tron, so you can also connect TronLink wallet. If you want to switch between different networks, you sometimes need to reconnect your wallets.
Slippage tolerance refers to the maximum amount of price slippage that you are willing to accept in a swap transaction. Price slippage can occur when the market price of a token changes between the time you submit the transaction and the time it is confirmed on the blockchain. Slippage takes place when swapping one token for another but doesn’t affect ETH/WETH and WETH/ETH pairs because their exchange rate is always 1:1.
To ensure a successful swap transaction, you should always double-check the token and amount you are swapping, confirm the exchange rate and gas fees, set an appropriate slippage tolerance, and ensure that you have enough funds to cover the gas fees.
Yes, there are risks associated with all DeFi protocols, including smart contract scams on fake DEXs. Make sure to use reputable DEXs or liquidity pools and be aware of the fees associated with swapping.