ETH on Minter is a wrapped ETH on the Ethereum network (wETH). wETH is 1:1 accurate to ETH.
What’s the purpose of wETH?
Ethereum’s native token ETH has been created before the implementation of ERC-20, that’s why it’s not compatible with that token format and can’t be directly converted into it.
The token format of ERC-20 determines the rules of token releases on the Ethereum network. Some of the rules include a way to transfer tokens, a way to confirm transactions, and a way to let users access token information.
Before this format appeared, crypto exchanges had to create their own bridges between platforms for trading. Many projects created on Ethereum have their own tokens, all tied to one format — ERC-20. And now almost every centralized and decentralized exchange is built on exchanging tokens of this format.
For ETH to be able to be traded quickly and accessibly, it needed to be brought to the widely used format of ERC-20. That’s why wETH came into existence.
wETH ↔ ETH swap
The conversion happens with a smart contract. The same smart contract performs the functions of wrapping and unwrapping.
There are special services that allow wETH ↔ ETH swaps with a simple interface:
• Relay. A decentralized exchange that allows 1:1 swaps from a connected wallet
• Uniswap. Decentralized exchange on Ethereum
ETH on Minter
To perform a cross-chain transfer of the original ETH to Minter, it’s not necessary to use a service to wrap it beforehand. Using Minter Console, you can directly wrap ETH into wETH and make a cross-chain transfer.
Keep in mind that a cross-chain transfer of actual ETH to Minter happens in 3 transactions: wrapping, allowing the smart contract to take money from your wallet, and the transfer itself. While performing the first transaction (wrapping ETH into wETH) doesn’t put all the ETH you have into the prompt, leave some to pay the fees for the next 2 transactions. To approximately calculate the amount of ETH needed to leave for fee payments, use https://etherscan.io/gastracker and look at the average fee price for a Uniswap Swap.
ETH tokens on Minter
ETH hot wallet —
ETH cold wallet —
wETH tokens on Ethereum (backing ETH tokens on Minter)
wETH hot wallet —
wETH cold wallet —
To minimize fee expenses, wrapped tokens on Minter are released in packets (they won’t exactly be 1:1 accurate with the supplying coins on Ethereum). But only the 100%-backed amount will be allowed to circulate on Minter, the rest will be on the hot and cold wallets, which are controlled with multisigs.
It doesn’t affect security and reliability, since minting and burning wrapped tokens on Ethereum is also managed by multisigs and they can be minted or burned at any moment upon reaching a required quantity of votes. In this case, Minter has an advantage over Ethereum as it doesn’t spend any money at all on fees.
The first packet of ETH tokens on Minter consists of 1 000 000 ETH.
At the time of writing, the cold wallet has 999 500 ETH.
Meanwhile, the hot wallet has 494.54 ETH.
This means that the amount of ETH circulated on Minter is:
1 000 000 - 999 500 - 494.54 = 5.46 ETH (rounded to 2 decimal places)
In the meantime, the hot wallet balance storing the wETH tokens that back ETH on Minter consists of 5.46 wETH (rounded to 2 decimal places).
Liquidity pools with ETH
By clicking on a pair, you can see all the basic liquidity information, token price correlation, daily trade volume, daily fee amount received by liquidity providers, and the current APY (yearly profitability).
And on the page of the pair at Chainik, you can also track the price change chart.
ETH cross-chain transfer
You can learn about transferring wETH and other tokens from Ethereum to Minter and back on our page about cross-chain transfers.
Advantages of ETH on Minter
The advantages of having a wrapped ETH, like other tokens on Minter, lie in the blockchain’s possibilities — first off, the transaction speed (less than 5 seconds) and low fees ($0.01 per transfer and $0.03 + 0.2% per swap). You can learn about other advantages Minter has on a corresponding page in our database.
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