Coinbase Wrapped Stake ETH (cbETH) allows for the sale and transfer of staked ETH. However, the new product of the exchange will also have various uses for use as collateral in DeFi protocols.
US-based cryptocurrency exchange Coinbase introduced its own liquid staking token, called Coinbase Wrapped Stake ETH (cbETH), ahead of Ethereum Merge in September, in a tweet it shared recently.
Coinbase’s New Product Will Run on Ethereum
Coinbase announced on Twitter that the newly introduced liquid staking token will work on the Ethereum network.
Coinbase said in a whitepaper that in liquid staking, locked staked assets are wrapped in transferable tokens4 representing ownership of underlying staked assets and rewards earned. Coinbase also announced that the tokens will be fully transferable.
https://twitter.com/CoinbaseAssets/status/1562476695357358080
Merge, the first step in Ethereum’s transition from Proof of Work consensus mechanism to Proof of Stake, is scheduled to be completed at some point between 10-20 September. The network update is aimed to greatly increase the efficiency of the network.
Coinbase hopes to encourage mass adoption of the token, which will have various uses after the Merge. “Our hope is solid adoption of cbETH for commerce, transfer and use in DeFi applications,” according to the whitepaper. “With cbETH, Coinbase aims to contribute to the broader crypto ecosystem by creating high-utility wrapped tokens and open-source smart contracts,” the whitepaper said.
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