Rubbing and merging heat? Read the latest cbETH launched by Coinbase in one article

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Odaily资深作者

2022-08-25 03:01

This article is about 2265 words, reading the full article takes about 4 minutes

No giant wants to "miss out" on the Ethereum merger.

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No giant wants to "miss out" on the Ethereum merger.

This article comes fromCoinbase & decrypt, original author: Jason Nelson

Odaily Translator |

This article comes from

Odaily Translator |

On August 25th, Beijing time, the official website of the Ethereum Foundation released the "Mainnet Merger Announcement" and officially confirmed the time and process of the mainnet merger. First, the merger must be activated on the beacon chain through the Bellatrix upgrade. The Bellatrix upgrade is expected to be carried out at epoch 144896 on the beacon chain (corresponding to 7:34 pm Beijing time on September 6, 2022), and then the proof-of-work chain will reach Migrate to the proof-of-stake chain at a specific mining difficulty, and finally trigger the merger when the mining difficulty is 58750000000000000000000, which is expected to be between September 10-20, 2022.

Coincidentally, Coinbase also announced on the same day the launch of Coinbase Wrapped Staked ETH (“cbETH”), a new Staking packaging token based on the Ethereum ERC-20 standard. In fact, the function of cbETH is not complicated-since the ETH pledged by users in the beacon chain will be locked until the upgrade of the Ethereum protocol is completed, so the liquidity will be affected, but with cbETH, Coinbase users can Sell, transfer, spend, or otherwise use the locked pledged ETH (Note: cbETH will be transferred to a self-custodial wallet and traded on the Coinbase platform).

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Coinbase Wrapped Staked ETH (“cbETH”), which represents ETH staked through Coinbase, is a utility wrapped token minted exclusively by Coinbase that can be sold or sent off-platform, while ETH2 will remain locked until the future of Ethereum The protocol upgrade is complete.

The price of cbETH may diverge from ETH over time because:

cbETH value = the value of 1 pledged ETH + the value of all accumulated pledge interest since June 16, 2022 (the interest calculation time is the time when cbETH exchange rate and balance are initialized)

After encapsulating ETH2, you can sell or send your own pledged ETH before the Ethereum network upgrade. It is expected that this function will be realized in 2023 at the earliest. In addition, cbETH can also be used for DeFi and other dapps.white paper。

In addition, if you want to sell your own ETH2 or send it to another wallet, you need to package it as cbETH, which is the only option. Since cbETH is an ERC-20 token, it can be sold or sent at any time. If you want to know the technical details of cbETH, you can visit its

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What is Token Wrapping?

Token encapsulation is to lock encrypted assets in smart contracts and issue new tokens (encapsulated tokens) on the blockchain to represent native tokens.

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What are the qualifications for encapsulating cbETH?

If ETH staking is allowed in your country, you are eligible to get cbETH by wrapping staked ETH (ETH2).

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What are the risks of encapsulating and staking ETH?

1. If malicious operations or wrong operations occur on the Ethereum network or verifiers, the protocol will punish them and deduct a certain amount of pledged ETH;

2. There is a lack of liquidity in the market.

These risks may cause the value of cbETH to be lower than the pledged ETH, which also means that packaging and selling cbETH will also suffer losses. In addition, Coinbase does not currently provide a "unseal" function, so it cannot support instant withdrawal of your pledged ETH. However, a “unseal” feature is already in development, at which point users should be able to return their staked ETH plus any accrued interest.

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How to verify the cbETH token address in the wallet?

The official cbETH contract is: 0xbe9895146f7af43049ca1c1ae358b0541ea49704;

When accessing the address page of cbETH on Etherscan, users should be able to see the official contract address on the right side of the page, as shown in the figure below:

When receiving or purchasing cbETH tokens from the Coinbase platform, please confirm that "cbETH" tokens correspond to the above contact address. Anyone can mint tokens using the code "cbETH", so if in doubt, please confirm the contract address.secondary title

What are the use cases for cbETH?1. "Exit" pledged ETH:

Bob pledged ETH on Coinbase in 2021 and hopes to sell the position in 2022, but the ETH pledged on the beacon chain is still locked. At this time, he can package ETH into cbETH according to the exchange rate and sell cbETH according to the market price to obtain cash;Alice wants to use her ETH to earn staking rewards, and at the same time wants to borrow USDC in a DeFi protocol. At this point, she can package the pledged ETH into cbETH, then deposit cbETH as collateral in the DeFi protocol and borrow USDC. In this case, Alice maintains her ETH position, and as a cbETH holder, she can continue to receive relevant staking rewards.