The Ethereum network has made the switch from proof-of-work mining to proof-of-stake mining. The transition was completed successfully on September 15, 2022. Additionally, the blockchain went through some major changes as the miners were replaced by validators.
Recently, the much-awaited Shapella upgrade went live, allowing these stakers to withdraw their staked ETH. However, ETH is the second-largest cryptocurrency and was created way back before the emergence of dApps.
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Then the real question emerges as to what it is and why it exists. Wrapped Ether was created to give Ethereum-based decentralized applications (dApps) a more standardized approach to interface with Ether, the network’s native coin.
What is Wrapped Ethereum (wETH)?
wETH is just Ether wrapped in a smart contract to provide it with a standardized ERC-20 interface, allowing it to be exchanged and utilized within decentralized exchanges (DEXs) and other Ethereum-based services.
Given that Ether lacked the most widely used standard for tokens, the ERC-20 interface, it was necessary to create wETH. The process of wrapping ether includes moving the ETH to a smart contract. wETH will then be generated in return for this process. Additionally, this is to ensure that there is a reserve backing every wETH.
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Before we look into how to unwrap Ethereum, let us look at how we can wrap it in just a few simple steps.
How to wrap Ether?
There are different ways to wrap Ethereum. One method involves the swapping of ETH for wETH through a cryptocurrency exchange. Another common method is the use of a smart contract. Let us look at the step-by-step guide on how to wrap ETH using OpenSea and MetaMask.
- Go to OpenSea and connect your MetaMask wallet.
- Click on the “Wallet” option. You will see three dots in the top-right corner. Click on the three dots next to Ethereum.
- Click on “Wrap” from the drop-down menu.
- Enter the amount and click on “Wrap ETH.”
- Once it is done, confirm the MetaMask pop-up for the transaction to be complete.
- That’s it. You will receive wETH which will shine brightly in pink.
Now that we have covered how to wrap Ether, let us look at how to unwrap Ether using MetaMask and OpenSea.
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How to unwrap Ethereum?
Unwrapping Ethereum is also a straightforward process. It works similarly to how you convert ETH to wETH. Let us look at the steps below.
- Go to OpenSea, and connect your OpenSea and MetaMask wallets.
- Click on the “Wallet” option. You will see three dots in the top-right corner. Click on the three dots next to the wrapped Ethereum.
- Click on “Unwrap” from the drop-down menu.
- Enter the amount and click on “Unwrap ETH.”
- Once it is done, confirm the MetaMask pop-up for the transaction to be complete.
- That’s it, the unwrapped ETH will be back in your wallet.