The second-most popular exchange in the world is Coinbase. It serves as the primary exchange platform for cryptocurrencies in the US. The exchange is initiating a spectacular endeavor with the impending Merger, which marks Ethereum’s (ETH) switch from Proof-of-Work to Proof-of-Stake.
The Coinbase Wrapped Staked Ethereum can be found here (cbETH)
ETH2 won’t be able to leave the Ethereum network during the merger until the update is finished. Therefore, during the changeover, users generally won’t have access to the new version of the ETH token. Despite the Merger, the American exchange has managed to find a means to let its consumers use their ETH2.
In fact, Wrapped Staked Ethereum is the name of a brand-new digital asset that Coinbase plans to introduce (cbETH). According to the cryptocurrency exchange, users who stake ETH can obtain an ERC20 utility token called Coinbase Wrapped Staked ETH (cbETH), which is a liquid representation of their staked ETH.
- “ All staked ETH is locked until a future Ethereum protocol upgrade is completed. In the meantime, Coinbase created cbETH to give customers the ability to sell, transfer, spend, or otherwise use their staked ETH while it remains locked ,” he added.
The new ETH-based coin from Coinbase is a tradeable and liquid asset. It is only available to investors who have staked Ethereum on the site. It can be transferred away from Coinbase, but not to another blockchain. Do not send this item to other networks or your funds will be lost, the exchange advises users “.
The price of the cbETH utility token is not intended to be equal to that of ETH 1:1, according to Coinbase, which announced the launch of the coin. According to the exchange, “cbETH represents staked ETH plus all of its accrued staking interest, dating back to the initialization of the cbETH conversion rate and balance (June 16, 2022),” “.
