Why do we need wrapped ETH?

Why do we need wrapped ETH? This concept seems to add an extra layer of complexity to the already intricate world of cryptocurrency. Isn't ETH already a functional and widely used token? What benefits does wrapping it offer? Does it enhance security, increase liquidity, or expand its use cases? Are there any drawbacks or risks associated with this process? How does wrapped ETH fit into the broader ecosystem of decentralized finance? And finally, who are the primary beneficiaries of this innovation - investors, developers, or perhaps the wider cryptocurrency community?