Coinbase has recently rolled out a new asset made up of Ether tokens that are staked and wrapped through the exchange.
The crypto exchange announced on Wednesday that it will offer Coinbase Wrapped Staked ETH (cbETH) as an ERC-20 token on the Ethereum network, enabling users to use their staked Ether (ETH) while receiving incentives on the exchange.
Coinbase will add support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds will be lost.
What is cbETH? Let’s dive in 🧵👇 pic.twitter.com/n3Dp4OA6HO
— Coinbase Assets (@CoinbaseAssets) August 24, 2022
Coinbase’s website wrote, with the newly wrapped staked token balance being displayed on their accounts, users are allowed to withdraw tokens to it, stake them, and then convert ETH2 into cbETH.
On August 25, if the “liquidity conditions are met”, the tokens are anticipated to be available for trading.
According to Coinbase’s cbETH white paper released in August, they hope that cbETH will attain widespread use for trade, transfer, and use in DeFi applications, and with the wrapped token, the firm’s goal is to create high-utility wrapped tokens and open sourcing smart contracts as a contribution to the broader ecosystem.
The white paper further stated that cbETH will effectively serve as a compound token, or cToken, due to the fact that they are ERC-2 compliant — thus they are most widely compatible with dApps in DeFi today.
On Wednesday, Ethereum Foundation announced that the network will be launched on the Beacon Chain from September 6 onwards with the Bellatrix upgrade. The transition to proof-of-stake is likely to occur before September 20.
On August 16, “as a precautionary measure” to handle the transition, Coinbase announced that it intends to “temporarily pause” deposits and withdrawals of ETH and ERC-20 tokens.
