The cryptocurrency exchange Coinbase announced the launch of the Coinbase Wrapped Staked ETH (cbETH) token. It is a derivative asset issued against ETH staked on the Ethereum platform.
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
cbETH — token ERC-20 standard. The asset can be withdrawn from the platform and used in various DeFi protocols.
The platform effectively implements the function of liquid staking. The latter enables investors to earn additional yield for locking tokens based on the Proof-of-Stake (PoS) algorithm.
The initiative is being pursued in advance of the scheduled The Merge.
“With cbETH Coinbase aims to contribute to the broad crypto ecosystem,” the white paper says.
Subject to liquidity criteria, trading of the asset in a US dollar pair will begin on August 25.
cbETH will compete with stETH from Lido Finance.
Earlier this August, US Coinbase Prime gained the ability to stake Ethereum.
Earlier, the company said it paused some operations during Ethereum’s transition to PoS.
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