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  1. Bitcompare
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  3. WETH (WETH)
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WETH (WETH) Interest Rates

Compare WETH interest rates for lending, staking, and borrowing

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About WETH (Wrapped Ether)

WETH, or Wrapped Ether, is an ERC-20 token that represents Ether (ETH) on the Ethereum blockchain. It allows for seamless integration with decentralized applications (dApps) and smart contracts that require ERC-20 compatibility.
WETH is primarily used within the Ethereum ecosystem to interact with decentralized finance (DeFi) applications. Users can provide liquidity by supplying WETH to decentralized exchanges (DEXs) like Uniswap to earn trading fees.
WETH operates under a unique tokenomics model, pegged to ETH at a 1:1 ratio. The supply of WETH is determined by the amount of ETH wrapped into the WETH smart contract, ensuring that each WETH is backed by an equivalent amount of ETH.
The security of WETH is tied to the robust features of the Ethereum network. Ethereum's Proof of Work (PoW) consensus mechanism validates transactions, protecting against fraud and double-spending. As Ethereum transitions to Proof of Stake (PoS) with Ethereum 2.
WETH was introduced in June 2016 to enable Ether (ETH) usage in dApps requiring ERC-20 compatibility. Since then, it has seen widespread adoption across various DeFi protocols, facilitating liquidity and trading. As Ethereum evolves, particularly with the transition to Ethereum 2.

How to Keep Your WETH Safe?

To ensure the security of your WETH holdings, consider using a hardware wallet, such as Ledger or Trezor, which provides offline storage and protects against online threats. Always keep your hardware wallet firmware updated. For private key management, generate keys in a secure environment and never share them. Use a strong, unique password for any wallet software and enable two-factor authentication whenever possible. Be aware of common security risks, such as phishing attacks and malware, and mitigate these by verifying URLs, using antivirus software, and avoiding public Wi-Fi for transactions. Implement multi-signature wallets for added security, which require multiple approvals for transactions, thereby reducing the risk of unauthorized access. Regularly back up your wallet and private keys in multiple secure locations to ensure you have access to recovery options in case of hardware failure or loss.

How Does WETH Work?

WETH, or Wrapped Ether, operates on the Ethereum blockchain, a decentralized platform that enables smart contracts and decentralized applications (dApps). Ethereum utilizes a Proof of Work (PoW) consensus mechanism, transitioning to Proof of Stake (PoS) with the Ethereum 2.0 upgrade, to validate transactions and secure the network. In the transaction validation process, miners or validators confirm transactions by solving complex cryptographic puzzles, ensuring that only legitimate transactions are added to the blockchain. Network security is maintained through a combination of cryptographic techniques, decentralized node validation, and economic incentives for participants to act honestly. Unique technical features of WETH include its ability to facilitate interoperability with ERC-20 tokens, allowing users to utilize Ether in decentralized finance (DeFi) applications while preserving the underlying value of Ether itself.

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Frequently Asked Questions About WETH (WETH) Interest Rates

What is WETH, and how does it differ from ETH?
WETH stands for Wrapped Ether. It is an ERC-20 compatible version of Ether designed to operate on networks that require ERC-20 tokens. The wrapped token maintains a 1:1 peg with ETH, backed by real ETH held in reserve by a custodian or smart contract. The main difference is compatibility: WETH can be used in Ethereum-based DeFi protocols, automated market makers, and lending platforms that only support ERC-20 tokens, while ETH is the native cryptocurrency of the Ethereum network. To convert, you can wrap ETH by sending ETH to a smart contract and receive WETH in return, and vice versa when you unwrap it.
What is the current market status of WETH (price, market cap, circulating supply)?
WETH is typically pegged to ETH and trades close to ETH’s price. In the provided data, WETH has a market cap around 5.07 billion USD and a circulating supply of approximately 2.23 million WETH. The current price is about 2,264.91 USD per WETH, reflecting ETH’s price level on the connected exchange or aggregating feed. The 24-hour price change shows recent volatility, with a decrease of about 3.54%. Always verify price and market cap on a reliable data source, as figures can vary slightly across platforms.
How can I use WETH in DeFi, and what are common use cases?
WETH enables seamless participation in Ethereum-based DeFi that requires ERC-20 compatibility. Common use cases include providing liquidity on decentralized exchanges (DEXes), borrowing and lending on protocols that accept ERC-20 tokens, and engaging in yield farming strategies. You can deposit WETH into liquidity pools, earn fees and rewards, or use WETH as collateral to borrow other assets. When performing any DeFi activity, ensure you understand gas costs, slippage, and the risk of smart contract exploits. Always use reputable platforms and enable appropriate security measures, such as hardware wallets and two-factor authentication.
What are the steps to convert ETH to WETH and back, and what should I watch out for?
To convert ETH to WETH, use a wallet or protocol that supports wrapping: send ETH to the wrapper contract and receive WETH 1:1. To unwrap, send WETH to the unwrap function and receive ETH back. In many wallets, this is a single-click process. Watch out for gas fees, which can be high during network congestion, and confirm the exact WETH amount after fees. Some platforms charge additional wrapping or unwrapping fees. Always ensure you are interacting with the correct contract address to avoid scams. Use trusted interfaces and double-check network compatibility if you’re moving across chains.
Is WETH on a particular platform or network, and how is its liquidity managed?
WETH is designed to be ERC-20 compliant on Ethereum and is often used across many DeFi protocols and DEXs that require ERC-20 tokens. Liquidity for WETH is typically provided through wrap/unwrap mechanisms and trading pairs against ETH and other ERC-20 tokens across major DEXs. Since WETH is pegged 1:1 to ETH, liquidity dynamics largely track ETH’s liquidity. Investors should monitor liquidity pools, trading volumes, and protocol risk (smart contracts, governance changes). For those seeking higher assurance, prefer pools with audited contracts and proven track records, and consider diversification to manage risk.

Compare WETH (WETH) Interest Rates

WETH (WETH) Lending Rates

See all 32 lending rates

WETH (WETH) Borrowing Rates

See all 22 borrowing rates
PlatformActionMax RateBase RateMin DepositLockupUS Access
CompoundGo to Platform1.88% APY———Check terms
AaveGo to Platform1.76% APY———Check terms
PlatformActionBest RateLTVMin CollateralUS Access
AaveGet Loan1.45% APR——Check terms
CompoundGet Loan2.32% APR——Check terms

WETH Lending Rates Market Summary

Average Rate
1.82% APY
Highest Rate
1.88% APY
Compound
Platforms Tracked
2
Best Risk-Adjusted
1.88% APY
Compound

How to read this table:

  • Max Rate — Max Rate is the advertised maximum.
  • Base Rate — Base Rate is what most users actually get (often requires token staking or high tiers for max rate).

Learn more about how rates work →