DeFiBeat

wrapped collateral asset

WETH

Wrapped Ether is tracked as collateral exposure with issuer, redemption, deployment, and dependency assumptions separated from protocol-level findings.

reviewedmedium
Exposure
$13.60B
Mapped usage across reviewed markets.
Deployments
5
Ethereum
Controls
3
Issuer, admin, wrapper, and redemption controls.
Market usage
25
Protocol markets referencing this asset.

Asset facts

Typed fields that define the asset risk surface.

NameWrapped Ether
IssuerWETH contract
Typewrapped
Canonical chainEthereum
BackingCanonical wrapper around ETH on each chain deployment.
RedemptionUnwraps 1:1 into native ETH on the same chain when the wrapper contract is live.
Review statusreviewed

Deployments

Canonical chain and cross-chain deployment footprint.

5 chains
ChainRoleSettlementL2 stage
EthereumcanonicalEthereum L1Not applicable
Arbitrum OnedeploymentEthereum L1Stage 1
BasedeploymentEthereum L1Stage 1
OP MainnetdeploymentEthereum L1Stage 1
Polygon PoSdeploymentEthereum contracts + validator setNot documented

Protocol market exposure

Markets where this asset is accepted as collateral.

25 rows
ProtocolMarketChainLTVLiquidationSupply capBorrow capUtilization
Aave V3Ethereum core poolEthereum78%83%$8.00B$5.20B
74.0%
Aave V3Base core poolBase75%80%$2.60B$1.50B
69.0%
Aave V3Arbitrum core poolArbitrum One75%81%$3.40B$2.10B
72.0%
Compound IIIEthereum USDC CometEthereum79%85%$1.30B$900.0M
67.0%
Compound IIIBase USDC CometBase76%82%$850.0M$540.0M
81.0%
Morpho BluewstETH/USDC vault marketsEthereum77%82%$2.10B$1.40B
88.0%
Morpho BlueBase cbETH/USDC marketsBase72%78%$900.0M$520.0M
76.0%
SparkEthereum SparkLendEthereum76%81%$2.90B$1.90B
71.0%
SparkBase stable marketsBase75%80%$780.0M$450.0M
58.0%
Sky / MakerDAI/USDS backing systemEthereum66%72%$6.00B$3.80B
62.0%
CurveETH LST poolsEthereum0%0%$1.20B$0
49.0%
Uniswap V3Major Ethereum poolsEthereum0%0%$2.40B$0
57.0%
Uniswap V3Base major poolsBase0%0%$820.0M$0
61.0%
LidostETH/wstETH issuanceEthereum0%0%$12.00B$0
44.0%
ether.fiweETH issuance and deploymentsEthereum0%0%$3.20B$0
68.0%
KelpDAOrsETH issuance and deploymentsEthereum0%0%$880.0M$0
73.0%
Frax FinanceFRAX stablecoin and lendingEthereum72%78%$900.0M$520.0M
63.0%
SiloEthereum LST silosEthereum70%76%$360.0M$230.0M
66.0%
SiloArbitrum stable silosArbitrum One72%78%$190.0M$90.0M
52.0%
Euler V2Ethereum EVK vaultsEthereum74%80%$780.0M$490.0M
70.0%
BalancerEthereum boosted LST poolsEthereum0%0%$620.0M$0
47.0%
Coinbase cbETHcbETH issuance and marketsBase0%0%$1.40B$0
55.0%
Rocket PoolrETH issuance and liquidityEthereum0%0%$1.10B$0
46.0%
WormholeBridged asset routesEthereum0%0%$900.0M$0
64.0%
AcrossCross-chain bridge liquidityEthereum0%0%$640.0M$0
58.0%

Risk findings

Asset-level assumptions with explicit evidence and outcome text.

SeverityDimensionFindingOutcomeEvidenceSources
mediumchain settlement daChain-specific WETH inherits chain riskA chain failure can affect withdrawals or liquidation execution.WETH collateral on L2s depends on that chain's settlement and bridge path.

Dependency edges

Issuer, wrapper, backing, bridge, oracle, and protocol paths touching this asset.

SeverityDirectionEdge typeDependency pathAnalyst label
criticalinboundbacksrsETH -> WETHrsETH is backed by restaked ETH positions
highinboundbackseETH -> WETHeETH is backed by ETH staking and restaking positions
highinboundbacksezETH -> WETHezETH is backed by restaked ETH positions
mediumoutboundsettles onWETH -> Arbitrum OneWETH deployment inherits Arbitrum One chain assumptions
mediumoutboundsettles onWETH -> BaseWETH deployment inherits Base chain assumptions
mediumoutboundsettles onWETH -> OP MainnetWETH deployment inherits OP Mainnet chain assumptions
mediumoutboundsettles onWETH -> Polygon PoSWETH deployment inherits Polygon PoS chain assumptions
mediuminboundbacksstETH -> WETHstETH value depends on staked ETH redemption
mediuminbounddepends onWBTC -> WETHWBTC liquidation depth depends on ETH and stablecoin markets during stress
lowoutboundsettles onWETH -> EthereumWETH deployment inherits Ethereum chain assumptions
lowinboundaccepts collateralAave V3 -> WETHAave V3 Ethereum core pool accepts WETH as collateral or core liquidity
lowinboundaccepts collateralAave V3 -> WETHAave V3 Base core pool accepts WETH as collateral or core liquidity
lowinboundaccepts collateralAave V3 -> WETHAave V3 Arbitrum core pool accepts WETH as collateral or core liquidity
lowinboundaccepts collateralCompound III -> WETHCompound III Ethereum USDC Comet accepts WETH as collateral or core liquidity
lowinboundaccepts collateralCompound III -> WETHCompound III Base USDC Comet accepts WETH as collateral or core liquidity
lowinboundaccepts collateralMorpho Blue -> WETHMorpho Blue wstETH/USDC vault markets accepts WETH as collateral or core liquidity
lowinboundaccepts collateralMorpho Blue -> WETHMorpho Blue Base cbETH/USDC markets accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSpark -> WETHSpark Ethereum SparkLend accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSpark -> WETHSpark Base stable markets accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSky / Maker -> WETHSky / Maker DAI/USDS backing system accepts WETH as collateral or core liquidity
lowinboundaccepts collateralCurve -> WETHCurve ETH LST pools accepts WETH as collateral or core liquidity
lowinboundaccepts collateralUniswap V3 -> WETHUniswap V3 Major Ethereum pools accepts WETH as collateral or core liquidity
lowinboundaccepts collateralUniswap V3 -> WETHUniswap V3 Base major pools accepts WETH as collateral or core liquidity
lowinboundaccepts collateralLido -> WETHLido stETH/wstETH issuance accepts WETH as collateral or core liquidity
lowinboundaccepts collateralether.fi -> WETHether.fi weETH issuance and deployments accepts WETH as collateral or core liquidity
lowinboundaccepts collateralKelpDAO -> WETHKelpDAO rsETH issuance and deployments accepts WETH as collateral or core liquidity
lowinboundaccepts collateralFrax Finance -> WETHFrax Finance FRAX stablecoin and lending accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSilo -> WETHSilo Ethereum LST silos accepts WETH as collateral or core liquidity

Blast radius

Highest-severity mapped paths that could propagate asset risk.

28 paths
SeverityDirectionEdge typeDependency pathAnalyst label
criticalinboundbacksrsETH -> WETHrsETH is backed by restaked ETH positions
highinboundbackseETH -> WETHeETH is backed by ETH staking and restaking positions
highinboundbacksezETH -> WETHezETH is backed by restaked ETH positions
mediumoutboundsettles onWETH -> Arbitrum OneWETH deployment inherits Arbitrum One chain assumptions
mediumoutboundsettles onWETH -> BaseWETH deployment inherits Base chain assumptions
mediumoutboundsettles onWETH -> OP MainnetWETH deployment inherits OP Mainnet chain assumptions
mediumoutboundsettles onWETH -> Polygon PoSWETH deployment inherits Polygon PoS chain assumptions
mediuminboundbacksstETH -> WETHstETH value depends on staked ETH redemption
mediuminbounddepends onWBTC -> WETHWBTC liquidation depth depends on ETH and stablecoin markets during stress
lowoutboundsettles onWETH -> EthereumWETH deployment inherits Ethereum chain assumptions
lowinboundaccepts collateralAave V3 -> WETHAave V3 Ethereum core pool accepts WETH as collateral or core liquidity
lowinboundaccepts collateralAave V3 -> WETHAave V3 Base core pool accepts WETH as collateral or core liquidity
lowinboundaccepts collateralAave V3 -> WETHAave V3 Arbitrum core pool accepts WETH as collateral or core liquidity
lowinboundaccepts collateralCompound III -> WETHCompound III Ethereum USDC Comet accepts WETH as collateral or core liquidity
lowinboundaccepts collateralCompound III -> WETHCompound III Base USDC Comet accepts WETH as collateral or core liquidity
lowinboundaccepts collateralMorpho Blue -> WETHMorpho Blue wstETH/USDC vault markets accepts WETH as collateral or core liquidity
lowinboundaccepts collateralMorpho Blue -> WETHMorpho Blue Base cbETH/USDC markets accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSpark -> WETHSpark Ethereum SparkLend accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSpark -> WETHSpark Base stable markets accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSky / Maker -> WETHSky / Maker DAI/USDS backing system accepts WETH as collateral or core liquidity
lowinboundaccepts collateralCurve -> WETHCurve ETH LST pools accepts WETH as collateral or core liquidity
lowinboundaccepts collateralUniswap V3 -> WETHUniswap V3 Major Ethereum pools accepts WETH as collateral or core liquidity
lowinboundaccepts collateralUniswap V3 -> WETHUniswap V3 Base major pools accepts WETH as collateral or core liquidity
lowinboundaccepts collateralLido -> WETHLido stETH/wstETH issuance accepts WETH as collateral or core liquidity
lowinboundaccepts collateralether.fi -> WETHether.fi weETH issuance and deployments accepts WETH as collateral or core liquidity
lowinboundaccepts collateralKelpDAO -> WETHKelpDAO rsETH issuance and deployments accepts WETH as collateral or core liquidity
lowinboundaccepts collateralFrax Finance -> WETHFrax Finance FRAX stablecoin and lending accepts WETH as collateral or core liquidity
lowinboundaccepts collateralSilo -> WETHSilo Ethereum LST silos accepts WETH as collateral or core liquidity