What's the Difference Between WAVAX and AVAX?

What is AVAX?

Avalanche (AVAX) is a cryptocurrency and blockchain platform that rivals Ethereum. AVAX is the native token of the Avalanche blockchain, which—like Ethereum—uses smart contracts to support a variety of blockchain projects.

The Avalanche blockchain can provide near-instant transaction finality. AVAX is used to pay transaction processing fees and secure the Avalanche network, and acts as a basic unit of account among blockchains in the Avalanche network.

What is WAVAX?

WAVAX or Wrapped AVAX is an ERC-20 compatible wrapper contract around the AVAX token.

On Avalanche's C-Chain, AVAX is treated just like standard ETH is on Ethereum. This means that AVAX lacks the standardized interfaces that make ERC-20 tokens so interchangeable. WAVAX corrects this by issuing one ERC-20 WAVAX token for each AVAX deposited. Each WAVAX is then redeemable for an equal amount of AVAX.