SNEAK PEEK
- A utility coin called Coinbase Wrapped Staked ETH (cbETH) serves as a liquid representation of staked Ethereum.
- Coinbase lists use situations where it has been utilized as DeFi market collateral.
- Prior to the Merge, the Ethereum Foundation also disclosed a quadrupling of bug rewards, with the value of significant flaws reaching $1 million.
A new asset called Ether tokens that are staked & wrapped through the cryptocurrency exchange has been introduced by Coinbase.
According to a statement made on Wednesday, Coinbase will offer Coinbase Wrapped Staked ETH (cbETH) as an ERC-20 token on the Ethereum network, enabling users to use their staked 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.
— Coinbase Assets (@CoinbaseAssets) August 24, 2022
What is cbETH? Let’s dive in 🧵👇 pic.twitter.com/n3Dp4OA6HO
The company’s website states that users can withdraw their tokens to Coinbase, stake them, and then convert their ETH2 into cbETH, with the newly wrapped staked token balance being displayed on their accounts. The tokens should be tradeable on August 25 “assuming liquidity criteria are met.”
According to Coinbase’s cbETH white paper, which was published in August, their objective is that cbETH will acquire robust adoption for trading, transfer, and use in DeFi applications.
Through the development of high-utility wrapped tokens as well as the open sourcing of smart contracts, Coinbase intends to contribute to the larger crypto ecosystem through cbETH.
The white paper states that while cbETH is more extensively interoperable with dApps in DeFi today, as a result, that they are ERC-20 compliant, it will basically serve as a compound token, or cToken:
The exchangeability of ETH and cbETH is not set or anticipated to be 1:1. In reality, each cbETH token is anticipated to represent more staked ETH as the underlying ETH continues to accumulate rewards, which could cause a divergence in the pricing of both assets over time.
The network will be launched on the Beacon Chain with the Bellatrix upgrade beginning on September 6, according to a statement released on Wednesday by the Ethereum Foundation. The Merge to proof-of-stake is anticipated to happen before September 20.
In order to manage the move, Coinbase stated on August 16 that it would “temporarily suspend” deposits and withdrawals of ETH and ERC-20 tokens.
On August 11, it was announced that the last testnet before the ETH mainnet merge, the Ethereum Goerlis testnet, had merged.
