Coinbase Showcases Pre-Merger Staked ETH Asset

"We expect cbETH to achieve robust adoption for trading, transfer and use in DeFi applications," said l 'crypto exchange.

Coinbase has launched a new asset in which Ether tokens are staked and wrapped through the crypto exchange.

In an announcement on Wednesday, Coinbase said it would list Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network as an ERC-20 token, allowing customers to use their staked Ether (ETH) while earning rewards on the exchange. According to its website, users can withdraw the tokens to Coinbase, stake them, and then wrap ETH2 in cbETH, with the new staked token balance visible in their accounts. The tokens are expected to be available for trading on August 25 "if liquidity conditions are met".

“We expect cbETH to achieve robust adoption for trading, transfer, and use in DeFi applications,” Coinbase said in its cbETH white paper published in August. “With cbETH, Coinbase aims to contribute to the broader crypto ecosystem by creating high-utility wrapped tokens and open-source smart contracts.”

Coinbase will add support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset to other networks or your funds will be lost.

What is cbETH? Let's dive pic.twitter.com/n3Dp4OA6HO

According to the whitepaper, cbETH will essentially function as a compound token, or cToken, given that they are "the most widely compatible with dApps in DeFi today due to the fact that they are compliant with the ERC-20":

"ETH and cbETH are not pegged or meant to be interchangeable. In fact, as the underlying staked ETH continues to accrue rewards, each cbETH token is expected to represent more ETH staked, which may result in a divergence in the prices of these assets over time."

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