pETH is a reserve receipt token for native ETH. Every outstanding pETH represents a redeemable claim on ETH held by the protocol, with accounting enforced by T + F = R and checked against the physical ETH balance.

WETH is optimized for execution and liquidity. pETH is optimized for transparent reserve accounting and deterministic redemption. WETH keeps wrapping minimal; pETH adds explicit reserve accounting, fee attribution, and invariant telemetry on every state-changing protocol action.

pETH does not derive value from validator operations or staking rewards. Instead, it represents a redeemable claim on native ETH held by the protocol and accounted for by the invariant T + F = R.

Solvency means you can redeem what you own. For pETH, redemption follows public protocol rules with explicit fee attribution, while reserve accounting stays constrained by T + F = R. If a transition would violate that accounting boundary, the transaction reverts instead of executing.

pETH targets unbacked mint paths, accounting drift, and hidden reserve mismatches. If any state transition would break invariant accounting, the transaction reverts before damage can persist.

Use pETH where transparent reserve accounting is critical: DAO treasuries, lending collateral, insurance reserves, and protocol-owned liquidity where users must verify reserve accounting and ETH balance at any block.