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can someone explain why we need WETH? what's the purpose of WETH, can't we just use plain ETH? it's not like it removes the tx fees or something. Hopefully someone can shed light on the concept.

2 Answers 2

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Ethereum's native token, ETH, doesn't follow the ERC20 standard.

The standard for tokens is ERC20, so in order to trade directly eth with alt tokens, ETH is wrapped into an ERC20 token, WETH.

See here for the contract code.

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WETH or wrapped ether is usually used in defi protocols where specific features of ERC-20 standard are needed (such as transfer approval, permit, limit orders, etc). ETH, on the other hand, is the native coin of the Ethereum network which is used for staking and paying transaction fees on the network.
The point that you should keep in mind is that WETH is issued by a third entity and is riskier than native ETH (i.e. it's seizable and subject to smart contract vulnerabilities).

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