Coinbase launched a new asset that consists of Ether tokens, which are staked through the crypto exchange.
Coinbase announced Wednesday that it will list Coinbase Wrapped Stocked ETH (cbETH), on the Ethereum network, as an ERC-20 token. Customers can use their staked Ether ( /ETH) and earn rewards on the exchange. Its website states that users can withdraw tokens to Coinbase and stake them. After this, they can wrap the ETH2 into cbETH with their new staked balance visible on the accounts. If liquidity conditions are met, the tokens will be available for trading by Aug. 25,
stated that the hope is that cbETH would be widely adopted for trade, transfer and use in DeFi apps. Coinbase’s cbETH white paper released in August stated that it aims to make high-utility tokens and smart contracts open-sourcing to help contribute to the wider crypto ecosystem.
Coinbase will support Coinbase Wrapped Steathed ETH (cbETH), on the Ethereum network (ERC-20 token). You will lose your funds if you send this asset to other networks.
What is cbETH? Let’s dive in pic.twitter.com/n3Dp4OA6HO
— Coinbase Assets (@CoinbaseAssets).
August 24, 2022
According to the whitepaper, cbETH will function essentially as a compound token or cToken since they are ERC-20 compatible and most compatible with dApps today in DeFi.
“ETH and CbETH cannot be pegged or expected not to interchangeably 1:1. Each cbETH token will represent more staked Ethereum, which could lead to a divergence of prices over time.
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Wednesday’s announcement by the Ethereum Foundation stated that the network would be activated on Beacon Chain. The Bellatrix upgrade will begin on Sept. 6, and the merge to proof-of-stake is expected before Sept. 20. Coinbase stated on Aug. 16 it would “briefly suspend” withdrawals and deposits of ETH and ERC-20 tokens to deal with the migration.