What are wrapped tokens and why do I need them?

Native tokens such as: ETH on Ethereum Mainnet, xDAI on xDAI network, or Matic on Polygon are special as they're the only token accepted for transaction fees on their respective network. The DAO Smart contracts cannot hold native tokens, only ERC-20's. So DAOs and a lot of their dapps use wrapped versions of those tokens. wETH is wrapped ETH, wxDAI is wrapped xDAI, and so on. As a wrapped token, they can be used now inside the DAO and dapps for proposals.

If you are wrapping tokens on Ethereum Mainnet, you can use WrapEth (opens in a new tab) a no frills wrapper with no fees.

If you are testing in Göerli and want to convert your Göerli ETH to WETH, use Uniswap (opens in a new tab)