Wrapping ETH involves depositing ETH into the WETH contract, which holds the ETH and issues an equivalent amount of WETH, an ERC-20 token. WETH enables ETH to be used in various DeFi protocols and applications that require ERC-20 tokens, as ETHm itself does not conform to this standard.
Unwrapping WETH sends it back to the contract, where the WETH tokens are burned, and the equivalent amount of ETH is returned to your wallet. The value of WETH is always pegged 1:1 with ETH, allowing for seamless interaction within the Ethereum ecosystem while maintaining the ability to revert to ETH.