Coinbase introduced liquid staking ETH assets, which took the crypto world with a fresh lease of hope. To date, much hype has been generated concerning the Ethereum blockchain’s upgrade to proof-of-stake consensus, which will finally happen on 15-16 September. Meanwhile, Coinbase’s wrapped Ethereum token raised the crypto community’s expectations. The exchange platform token aims to enable people to trade ether assets in the open market.
Coinbase introduced cbETH to foster adoption
Coinbase inculcates transparency norms in the new token because they want customers to make informed decisions. The exchange has plans to launch its liquidity token just before the merge booms the market. Those who intend to receive liquid ether remain in an advantageous position with the wrapped token. Per the whitepaper, in line with the floating conversion rate, users can mint or burn cbETH.
A principal focus underlying cbETH is encouraging large-scale adoption of this token, and they plan to explore its use cases to build trust with customers. With the wrapped ETH, people get the liberty to trade, stake Ethereum to any noncustodial wallets and even use the token in the form of collateral.
The best part of this brand-new token is that you will find it compatible with any decentralized application. Remember, cbETh and ETH are not pegged, which means you can’t exchange them.
Coinbase prepares for wrapped ETH adoption
Coinbase, the largest crypto trading exchange, takes a vital step to make Ethereum accessible to the crypto community. On Aug 24, 2022, the platform stated it would list Coinbase Wrapped Stake ETH as an ERC-20 token on the Ethereum ecosystem. Customers will now get access to rewards for using their staked ether in the exchange.
If we go as per the exchange’s website, customers can wrap ETH2 to cbETH without hassle. The report reveals that Coinbase is hopeful that its token will definitely appeal to the masses just before the much-speculated merge.
The exchange platform is heading towards broadening its ecosystem by introducing liquidity tokens that allow customers to transfer and trade ETH easily.