Tutorials:Uniswap Liquidity Pools II: Difference between revisions
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However transactions in Ethereum are more expensive, so you loose less on Price Impact, but pay more for gas. | However transactions in Ethereum are more expensive, so you loose less on Price Impact, but pay more for gas. | ||
== | =Why Wrapped Ether (WETH)?= | ||
Liquidity pools and token-pair contracts work with '''ERC-20 tokens'''. Native '''ETH is not an ERC-20''', so it cannot be handled with the usual token functions like '''approve''' and '''transferFrom'''. | |||
'''WETH''' is simply '''ETH wrapped into an ERC-20 token''' (1 WETH = 1 ETH), so pools can use ETH in the same standardized way as any other token. | |||
==Exercise:== | |||
Find the Wrapped Ether contract address. | Find the Wrapped Ether contract address. | ||
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* Visit the WEther/Summer contract. | * Visit the WEther/Summer contract. | ||
* In Token Holdings find the Wrapped Ether contract. | * In Token Holdings find the Wrapped Ether contract. | ||
* Visit the Wrapped Ether page | * Visit the Wrapped Ether page. | ||
[[File:LP7.jpg|800px]] | [[File:LP7.jpg|800px]] | ||
Latest revision as of 05:36, 13 January 2026
Uniswap Liquidity Pools II
In the previous quest we reviewed the WMatic/Summer Liquidity Pool contract.
Let's compare it to the WEther/Summer Liquidity Pool:
0xf254647f91fed4c85b8289708bd9011de6bbd527
Notice:
- In Tokens Holdings we see that there are only 3 assets. Because in Ethereum it is expensive to send transactions and spamming around is not cost effective.
- The total value of Ether and Tokens is significantly larger than the Polygon mining pool.
The fact that the total value of token holdings in Polygon is smaller than the Ethereum contract means that price impact is also a lot higher in Polygon than in Ethereum.
However transactions in Ethereum are more expensive, so you loose less on Price Impact, but pay more for gas.
Why Wrapped Ether (WETH)?
Liquidity pools and token-pair contracts work with ERC-20 tokens. Native ETH is not an ERC-20, so it cannot be handled with the usual token functions like approve and transferFrom. WETH is simply ETH wrapped into an ERC-20 token (1 WETH = 1 ETH), so pools can use ETH in the same standardized way as any other token.
Exercise:
Find the Wrapped Ether contract address.
- Visit the WEther/Summer contract.
- In Token Holdings find the Wrapped Ether contract.
- Visit the Wrapped Ether page.
