The reason some tokens, like Aimedis, require WETH instead of ETH for trading is due to the technical structure of the Ethereum network. WETH is a wrapped version of ETH that allows for compatibility with decentralized exchanges (DEXs) and smart contracts. It enables seamless trading and interaction with various ERC-20 tokens on the Ethereum blockchain. By using WETH, the token's functionality and interoperability are enhanced.
Topic: Why wrapped ETH ? (Read 202 times)
Wrapped tokens allow the asset to be used in different blockchains, and the commission in such pairs is somewhat lower than in the original token. Therefore, many pairs on decentralized exchanges are traded in pairs to wrapped tokens. Therefore, if you need to use a token to buy outside of the native blockchain network, often used its wrapped version.
Trying to buy Aimedis tokens and realize you need to use WETH ( Wrapped ETH ) to buy them. Why is this ? Why not just ETH ? And if I try to buy them with ETH... will I be unable to trade ?
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
WETH is ERC-20 compliant version of ETH. By wrapping your ETH into WETH, you can seamlessly interact with dApps and smart contracts that require ERC-20 tokens. If you attempt to purchase Aimedis tokens or any other token that requires with ETH directly, your transaction may fail, or you may encounter compatibility issues. This is because the smart contract handling the token sale is designed to work with ERC-20 tokens, and as mentioned earlier, ETH does not strictly adhere to this standard.Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
To avoid potential issues, it is recommended to convert your ETH to WETH before participating in token sales that require WETH. This conversion can be done through various decentralized exchanges (DEXs) like Uniswap or 1inch.
Why is this ? Why not just ETH ?
Ether(ETH) is the native token/currency of Ethereum, it has its own limited rule and standard. In order to expand the rule and adjust the limitation, another token standardization(ERC-20) is created. Hence, to be able to interact and integrate, using the same set of standards is necessary, that is the reason why it requires WETH which is based on the same ERC-20 standard with the token you want to trade.If wrapped Ether is required for the pair, it means you are interacting or trying to interact in a Blockchain which is not the Ethereum native one, usually that is the simplest explanation.
Nope, it is not. To interact with many tokens/platforms/smart-contracts, WETH can also be used on the Ethereum blockchain.I think I have also seen wrapped tokens in the main net, but I never fully understood or I mistakenly was using an explorer of a second layer implementation instead of the main net.
I can understand Wrapped Bitcoin or Wrapped equivalents of Dogecoin, or other simple PoW coins, but wrapping sounds rather unnecessary in my misinformed eyes.
The wrapping of coins are supposed to be about offering a "bridge" between blockhains.
Yep, you can see the WBNB on BSC chain and WETH on ETH chain on the following links.
https://etherscan.io/token/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2
https://bscscan.com/token/0xbb4CdB9CBd36B01bD1cBaEBF2De08d9173bc095c
On layer two, wrapped token do also being used.
Wrapping Ether into WETH is necessary because in order for the application/smart contract can be working smoothly, they need to behave to the same rules. You might wonder why the native token itself does not set/have the same all-in-one rules, well, if they are doing that, it would be inefficient and rather tricky. Why create 10 rules, when the core requirements only require 5 rules? On the other hand, there is a need to create 10 rules because the requirements demand that.
No you can't use ETH for transaction in dApp because it's not ERC-20 Token, that's why WETH exist, its basically an ERC-20 compliant of ETH, its 1:1 with ETH, so I don't think you don't need to worry about the value, it's just one more step for you to do on the trading process.
As inconvenient as it may seem, using WETH to buy tokens does not limit your ability to trade. In fact, it expands your options by giving access to more tokens and DEXs. Moreover, WETH can be easily converted back to ETH whenever desired.
Yes, While the hesitation to use WETH is understandable, its benefits in terms of compatibility and liquidity outweigh initial ignorance. Embracing WETH lets you navigate a thriving decentralized ecosystem and access exciting investment opportunities.
Yes, While the hesitation to use WETH is understandable, its benefits in terms of compatibility and liquidity outweigh initial ignorance. Embracing WETH lets you navigate a thriving decentralized ecosystem and access exciting investment opportunities.
ETH coins are not compatible with custom contract exchange builds, it could be because a DEX is oriented only on another network eg on the Polygon chain or BSC. As smart contract innovation develops, it is possible for wrapped-coins to "migrate" the network via the bridge method. It aims to contribute to a wider variety of liquidity pairs from some of the major altcoins.
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Wrapped tokens, like WETH or Wrapped Bitcoin, are tokenized versions of cryptocurrencies that are pegged to the value of the original coin and can be unwrapped at any point.
https://coinmarketcap.com/alexandria/article/what-is-wrapped-ethereum-wethDon't be scared with weth man. It's only wrapping your token and it has no differnet with real ethereum. Just use it and it's safe. You will not unable to trade. You just need to trade it and that's it.
I think that you shall try to spend more minutes to read more about weth. have you ever use dex before?
It's just because the swap contract works better with ERC20 i guess, because literally swapping ERC20 tokens for native ethereum tokens would add some complexity.
what would be the solution for that, definitely just wrap the ethereum in ERC20 token then all things solved, no need to add more complexity and I guess that's why many swap platform
are just telling you to wrap your ethereum, moreover it's easy 1 step to wrap your ethereum.
it's just, with ethereum high gas fee, wrapping might requires additional fee which just gonna make you lost much more money.
what would be the solution for that, definitely just wrap the ethereum in ERC20 token then all things solved, no need to add more complexity and I guess that's why many swap platform
are just telling you to wrap your ethereum, moreover it's easy 1 step to wrap your ethereum.
it's just, with ethereum high gas fee, wrapping might requires additional fee which just gonna make you lost much more money.
The wrapping of coins are supposed to be about offering a "bridge" between blockhains.
"Bridging" blockchains is just one of the use cases of Wrapping coinsBut the main reason for wrapping ETH is because of the limitations Ether has vs the other ERC-20 tokens. For example swapping an Erc-20 token directly for ETH won'tbe possible on the current version of Uniswap
Why is this ? Why not just ETH ?
Ether(ETH) is the native token/currency of Ethereum, it has its own limited rule and standard. In order to expand the rule and adjust the limitation, another token standardization(ERC-20) is created. Hence, to be able to interact and integrate, using the same set of standards is necessary, that is the reason why it requires WETH which is based on the same ERC-20 standard with the token you want to trade.If wrapped Ether is required for the pair, it means you are interacting or trying to interact in a Blockchain which is not the Ethereum native one, usually that is the simplest explanation.
Nope, it is not. To interact with many tokens/platforms/smart-contracts, WETH can also be used on the Ethereum blockchain.I think I have also seen wrapped tokens in the main net, but I never fully understood or I mistakenly was using an explorer of a second layer implementation instead of the main net.
I can understand Wrapped Bitcoin or Wrapped equivalents of Dogecoin, or other simple PoW coins, but wrapping sounds rather unnecessary in my misinformed eyes.
The wrapping of coins are supposed to be about offering a "bridge" between blockhains.
Why is this ? Why not just ETH ?
Ether(ETH) is the native token/currency of Ethereum, it has its own limited rule and standard. In order to expand the rule and adjust the limitation, another token standardization(ERC-20) is created. Hence, to be able to interact and integrate, using the same set of standards is necessary, that is the reason why it requires WETH which is based on the same ERC-20 standard with the token you want to trade.If wrapped Ether is required for the pair, it means you are interacting or trying to interact in a Blockchain which is not the Ethereum native one, usually that is the simplest explanation.
Nope, it is not. To interact with many tokens/platforms/smart-contracts, WETH can also be used on the Ethereum blockchain.legendary
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Just use it. It was not a problem. Once you are doing a trade in the dex and your ethereum will be automatically converted into the WETH and once you are selling your token back and your ETH will be returned again from WETH.
It's safe and there's nothing to be worried. WETH and ETH are the same.
It's safe and there's nothing to be worried. WETH and ETH are the same.
its just basically wrapping your eth to become a token, so that it could be used in many dapps.
and if you don't need it afterwards you could simply convert it back again, it's really easy and i think you worry seem to be unnecessary.
and if you don't need it afterwards you could simply convert it back again, it's really easy and i think you worry seem to be unnecessary.
Trying to buy Aimedis tokens and realize you need to use WETH ( Wrapped ETH ) to buy them. Why is this ? Why not just ETH ? And if I try to buy them with ETH... will I be unable to trade ?
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
The token you are talking about AIMX is currently listed on a single Dex and that's Quickswap, and currently you can buy it with wrapped ETH only. Most of those decentralized exchanges work with wrapped version of a coin. I have used PanCakeSwap a year ago, and most of the tokens were purchasable with WBNB only. I had to convert my BNB to WBNB for swiping to those coins.
If the exchange only allows WETH then you must have to swap your ETH to WETH, and you'll have to pay the gas fees of the conversion. After that you can easily use the WETH to purchase the AIMX token from Qiuckswap by swapping your WETH with AIMX. The token isn't listed on any other exchanges and you won't be able to purchase it with any other currency in its current state. If in future the token gets listed on other exchanges then you might be able to purchase it with other coins.
Trying to buy Aimedis tokens and realize you need to use WETH ( Wrapped ETH ) to buy them. Why is this ? Why not just ETH ? And if I try to buy them with ETH... will I be unable to trade ?
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
Liquidity is provided for that specified trading pair, and I just tried searching for the token you mentioned and I feel it is not much of a problem to think as they are using the platform from matic, the weth trading pair. will also be similar to stablecoins or any crypto, that's how the project managers want it to be.Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
And the fact that once you've used the dex to trade, the instant transition won't take you many times, everything has its own arrangement as long as the pair's liquidity is stable enough.
Trying to buy Aimedis tokens and realize you need to use WETH ( Wrapped ETH ) to buy them. Why is this ? Why not just ETH ? And if I try to buy them with ETH... will I be unable to trade ?
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
It all depends on the exchange you want to buy them from. If you're planning to buy from centralized exchanges, then the required pairs are the only option you have, but if you're buying from swap exchanges (decentralized exchanges), then you can buy with your ETH holdings. All you have to do is either swap your ETH to WETH or just proceed with the swap. Some Dex do the swap automatically when you want to trade with them, but the price difference might be noticeable since they will have to interact with the blockchain separately for each swap.
If wrapped Ether is required for the pair, it means you are interacting or trying to interact in a Blockchain which is not the Ethereum native one, usually that is the simplest explanation.
It is something I learnt back then when I was using the Ronin wallet (the one of Axie Infinity) and realized one of the three listed coins were WETH, because the reasons I mentioned, not native Blockchain.
Also, keep in mind that WETH can have less pairs and liquidity in Exchanges, it is something that gave me trouble in Binance and got stuck some WETH there for some hours until I managed to get it out by depositing more to meet the minimum withdrawval amount.
It is something I learnt back then when I was using the Ronin wallet (the one of Axie Infinity) and realized one of the three listed coins were WETH, because the reasons I mentioned, not native Blockchain.
Also, keep in mind that WETH can have less pairs and liquidity in Exchanges, it is something that gave me trouble in Binance and got stuck some WETH there for some hours until I managed to get it out by depositing more to meet the minimum withdrawval amount.
Trying to buy Aimedis tokens and realize you need to use WETH ( Wrapped ETH ) to buy them. Why is this ? Why not just ETH ?
To easily interact with certain smart contracts or Dapps, the token needs to be ERC-20 compliant. Aimedis is ERC20 complaint but Ether is not. This is where WETH comes in since it's also an ERC-20Quote
And if I try to buy them with ETH... will I be unable to trade ?
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
Yes you won't be able to trade directly with ETH depending on the kind of platform or Dapp. The other option is to just use a centralized exchange that has aimedis token listed. Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
Trying to buy Aimedis tokens and realize you need to use WETH ( Wrapped ETH ) to buy them. Why is this ? Why not just ETH ? And if I try to buy them with ETH... will I be unable to trade ?
No. If they are requiring you to wrapped ETH then you need it. You can convert your ETH into WETH in exchanges where it is available. You can buy it on Uniswap.
Not just referring to AImedis but there are several other tokens that require WETH to buy them, not keen on using WETH
That's what they refer and that's why if you don't want to buy it with WETH, you have no choice and option because that's the very first requirement that a trader wants to be followed. Jump to: