Coinbase Wrapped Staked ETH (CBETH)
Coinbase Wrapped Staked ETH (cbETH) is a token that represents Ethereum (ETH) staked through Coinbase. Launched on August 24, 2022, cbETH allows Coinbase users to wrap their locked staked ETH to receive a tradable and on-chain asset that can be utilized in decentralized finance (DeFi) and various decentralized applications (DApps). Known as a liquid staking token, cbETH enables holders to enjoy the benefits of staking without the need for lockups or unbonding periods. According to the Coinbase team, cbETH acts as a utility token representing ETH2, which remains locked until a future protocol upgrade is implemented.
Technology
| Ticker | CBETH |
| Category | Crypto-Backed Tokens |
| Website | https://www.coinbase.com/cbeth |
| @CoinbaseAssets | |
| Contract Addresses | |
|---|---|
| ethereum | 0xbe...04 Copied! |
| optimistic-ethereum | 0xad...b2Copied! |
| base | 0x2a...22Copied! |
| arbitrum-one | 0x1d...2fCopied! |
| polygon-pos | 0x4b...f5Copied! |
cbETH is an ERC-20 token crafted using the cToken model, a structure developed by Compound Finance to represent deposited assets within their protocol. This model allows cbETH to be minted or burned according to a floating conversion rate. The conversion rate tracks the underlying staked ETH, accounting for staking and unstaking activities, rewards, penalties, and fees. This design enables users to transition between ETH and cbETH, once unwrapping becomes available, while adapting to ever-changing network conditions. Importantly, ETH and cbETH are not pegged to one another and do not have any lock-up or minimum deposit requirements for staking with Coinbase.
Utility
cbETH enhances user interoperability across diverse dApps, allowing them to convert ETH into cbETH for use as collateral on DeFi lending platforms. This conversion enables users to earn ETH rewards while effectively managing their capital across multiple DeFi platforms. Coinbase offers a solution to the challenge faced by users with tokens locked in the Beacon chain by allowing conversion of ETH into cbETH at the prevailing rate. Users can then trade cbETH at the current market rate, providing them with the flexibility to manage their positions even while tokens are staked in the Beacon chain. Additionally, transferring staked cbETH gives users the ability to move their assets to different destinations, which can be beneficial for sending to friends, selling, or switching to another non-custodial wallet.