Enhanced interoperability continues to be one of the greatest perks of wrapping tokens. Wrapped tokens are crypto assets that represent a cryptocurrency of a different blockchain network or token standard.
When tokens are wrapped, they are always pegged to the value of the original cryptocurrency. Meanwhile, these tokens can be used in other blockchains apart from the native blockchain of the cryptocurrency.
Apart from the enhanced interoperability they provide, they allow seamless interaction between non-native or non-compatible blockchains or token standards.
They also provide an enabling platform for myriads of DeFi opportunities, including cross-chain lending and borrowing, while boosting use cases and application of a cryptocurrency.
Every major blockchain network has a wrapped variant of its native cryptocurrency. Popular ones include Wrapped ETH (WETH) and Wrapped BTC.
Wrapped tokens like WETH works like stablecoins where their value is pegged to the value of another asset on a blockchain network.
Similarly, when you wrap an Ether token, its value is pegged with the native Ethereum and can be freely redeemed back to native Ethereum.
As mentioned earlier, WETH and other wrapped tokens allow cross-chain interoperability. Therefore, you can use wrapped Ethereum on any other blockchain network.
Essentially, wrapped tokens are created when the token standard of a different blockchain is applied to the assets in their native blockchain.
In this article, you’ll learn about how to unwrap Ether tokens on Metamask. So, without any further ado, let’s jump right in.
Steps to Unwrap WETH on Metamask
Every Ethereum wrapping transaction requires a custodian. These custodians include merchants, a smart contract, or multisignature wallets, and they serve as collateral that holds Ether tokens while giving back Wrapped Ethereum (WETH).
Therefore, when you wrap your Ether, you send your Ether to the custodian so that you can get a newly minted Wrapped Ethereum in return. The custodians serve as intermediaries to facilitate the process.
Unfortunately, using third-party custodians can expose your assets to unnecessary danger. This is because there is no full decentralized solution for wrapping tokens.
Third-party wrapping and unwrapping custodians and protocols are susceptible to hacking and compromise.
Meanwhile, unwrapping Ethereum works as simply as wrapping it, especially on Metamask. To unwrap Ether on Metamask, all you have to do is navigate to the swap section.
In Metamask swap, choose WETH and ETH in appropriate fields, indicate the amount of WETH you’d like to unwrap, and execute the transaction.
However, you must have some Ether tokens in your wallet to pay transaction fees.
Here’s a step-by-step guide on how to unwrap Ethereum on Metamask:
- Log in to your Metamask wallet
- Go to ‘Swap’
- Enter WETH in ‘From’ Field and ETH in ‘To’ Field
- Click ‘SWAP’
1. Log in to your Metamask wallet
To unwrap Ethereum in the Metamask wallet, simply navigate to your Google Chrome extension and open your Metamask wallet. Access the wallet with your login password.
2. Go to ‘Swap’
In your wallet dashboard, click on SWAP. However, before proceeding to unwrap your WETH, ensure you have enough Ether tokens to cover transaction fees.
3. Enter WETH in ‘From’ Field and ETH in ‘To’ Field
Choose WETH as the token you’re swapping from, and select ETH as the token you’re receiving in the second field.
Enter the amount of WETH you would like to unwrap and tap REVIEW SWAP to get quotes.
Review the swap and estimated gas fees.
4. Click ‘SWAP’
Finally, tap SWAP to unwrap your Wrapped Ethereum.
Conclusion
The need for wrapped tokens continues to rise, especially with the daily increase in multi-chain interaction for traders.
Ethereum is the most useful blockchain network. It is also the most developed network for deploying dApps. Therefore, the need for Wrapped Ethereum to link the Ethereum blockchain to other networks is understandable.
Apart from Metamask, you can also use Decentralized exchanges like Uniswap or CEXes like Binance to unwrap your WETH. In addition, you can unwrap Ethereum with bridging protocols. They allow you to move crypto assets between blockchain networks.