Tradable tokens in ParaSwap need to follow blockchain standards. The name of the standard changes from chain to chain, but they are all based on the ERC-20 standard from the Ethereum blockchain.

Native gas tokens, like ETH in Ethereum, are not ERC-20 tokens, so they can’t interact directly with smart contracts such as limit orders. To solve this, we use a smart contract that ‘wraps’ the ETH into wETH or Wrapped Ether, an ERC-20 token. This token can be ‘un-wrapped’ back to ETH at any moment; you just need to swap the wrapped version for the original token!

When wrapping a native gas token, do not forget to leave enough of the unwrapped version for gas fees, as wrapped tokens cannot be used to pay the gas for transactions.