Popular crypto exchange, Coinbase, has launched a new utility token for the platform’s users. The new token is an ERC-20 token, called Coinbase Wrapped Staked ETH.
According to reports, the new token is a liquid representation of staked ETH and can be used all across DeFi. It trades by the symbol cbETH.
All the staked ETH is locked in Coinbase due to the upcoming Ethereum Merge. Once the merge is complete and all the technological and financial uncertainties are taken care of, the staked ETH can be unlocked.
While the staked ETH is locked, the new token cbETH will give users the option to trade on their staked ETH. Moreover, the new cbETH token can also be traded off the Coinbase platform.
Coinbase will pause the withdrawal of ETH and ERC 20 tokens from Ethereum. While Coinbase expects the transformation of Ethereum from Proof-of-work to Proof-of-Stake to be seamless, it is taking a precautionary stance.
Moreover, the company reveals that there will be no ETH2 tokens. It also cautions its users against sending their tokens to upgrade to ETH2 as there is no such token.
It also revealed that the price of cbETH will deviate from staked ETH. This is because it will also include the accrued interest.
Read Also- Coinbase CEO Mentions Reason Staking Service Might Shut Down
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