Thursday, October 6, 2022
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What is cbETH?

Coinbase designed the new cbETH in particular to anticipate what Ethereum will be after its Merge update. To encourage the purchase and use of cbETH, Coinbase offers an additional return over ordinary returns for staking or locking coins in a network. Coinbase emphasises that the cbETH price is not fixed to ETH 1:1 but rather represents the ETHs staked plus all accrued staking interest since the conversion rate and balance of cbETH were first established.

Not only that, but Coinbase displays the Ethereum ERC-20 contract address for cbETH as 0xbe989595146f7af43049ca1c1ae358b0541ea49704 to minimise misunderstanding. Users will be able to wrap staked ETH (ETH2) into cbETH if they reside in one of the geolocations where ETH staking is permitted. If liquidity conditions are met, trading in cbETH will get started.

Users can sell or send their staked ETH before a future Ethereum network update, which might happen as soon as 2023, by wrapping their ETH2. DeFi and other dapps both accept cbETH. If you want to sell your ETH2 or transfer it to another wallet, you must wrap it for the cbETH.As an ERC-20 token, cbETH is always available for sale or transfer.

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