Coinbase has launched a brand new asset composed of Ether tokens which are staked and wrapped with the crypto exchange.
Inside a Wednesday announcement, Coinbase stated it will likely be listing Coinbase Wrapped Staked ETH (cbETH) around the Ethereum network being an ERC-20 token, allowing people to use their staked Ether (ETH) while earning rewards around the exchange. Based on its website, users can withdraw the tokens to Coinbase, stake them, after which wrap the ETH2 into cbETH, using the new wrapped staked token balance visible on their own accounts. The tokens are anticipated to be shown for buying and selling on August. 25 “if liquidity the weather is met.”
“Our hope is the fact that cbETH will achieve robust adoption for trade, transfer, and employ in DeFi applications,” stated Coinbase in the cbETH white-colored paper released in August. “With cbETH, Coinbase aims to lead towards the broader crypto ecosystem through creating high-utility wrapped tokens and open sourcing smart contracts.”
Coinbase will prove to add support for Coinbase Wrapped Staked ETH (cbETH) around the Ethereum network (ERC-20 token). Don’t send this asset over other systems or perhaps your funds is going to be lost.
What’s cbETH? Let’s join in pic.twitter.com/n3Dp4OA6HO
— Coinbase Assets (@CoinbaseAssets) August 24, 2022
Based on the white-colored paper, cbETH will basically be the compound token, or cToken, given they’re “most broadly suitable for dApps in DeFi today, because of the fact that they’re ERC-20 compliant”:
“ETH and cbETH aren’t pegged or likely to be interchangeable 1:1. Actually, because the underlying staked ETH is constantly on the accrue rewards, each cbETH token is anticipated to represent more staked ETH, which may lead to a divergence in prices of these assets with time.”
Related: Coinbase to improve transparency on potential 2022 listings
The Ethereum Foundation announced on Wednesday the network is going to be activated around the Beacon Chain using the Bellatrix upgrade beginning on Sept. 6, using the Merge to proof-of-stake expected before Sept. 20. Coinbase announced on August. 16 it planned to “briefly pause” deposits and withdrawals of ETH and ERC-20 tokens “as a precautionary measure” to handle migration.
