Coinbase has introduced a utility token called Coinbase Wrapped Staked ETH (cbETH) which can be traded out of the exchange and used in DeFi.
Coinbase has announced that it will give those who stake ETH an ERC20 utility token called Coinbase Wrapped Staked ETH (cbETH) — a liquid representation of their staked ETH.
The key feature here is that cbETH can be sold, transferred, and spent, as staked ETH is currently locked until the Shanghai protocol upgrade is complete. The cbETH tokens can be moved to a wallet outside of Coinbase and traded from there.
The introduction of cbETH comes ahead of Ethereum’s Merge, which is slated for next month. Coinbase published a whitepaper on cbETH this month, and it notes a few drawbacks to staking ETH as it is,
“This unpredictability and lack of liquidity limits the willingness of ETH holders to stake, diminishing network security. Worse still, staked ETH cannot be used for anything else (like collateral in DeFi), making the ETH token itself less useful.”
Coinbase sees a few use cases for cbETH, including exiting staked ETH positions, the use of the asset as collateral in the DeFi market, and the transfer of staked ETH. Coinbase is hoping that this will increase the utility of the token and wants to drive adoption among protocols.
Ethereum Foundation quadruples bug bounties ahead of Merge
In a blog post published on Aug. 24, the Ethereum Foundation revealed that it was quadrupling the bug bounties ahead of the Merge. The increase is valid from today until Sept. 8, and critical bugs are worth up to $1 million.
So far, Ethereum’s Merge testnet changes have gone smoothly. The Merge will be a landmark moment for Ethereum, and it will take the network into its next phase. While the price of ETH might be quite a way down from its all-time high, the development is expected to have an impact on it.
The Merge is achingly close
The Merge should take place somewhere between Sept. 10–20, according to the post by the Ethereum Foundation. It has been a long time coming, and multiple smooth testnet merges have only buoyed investors and enthusiasts further.
The staking of ETH has risen considerably as the Merge has been inching closer, with an average of 36,000 ETH added each week. There is a lot of optimism surrounding ETH, with the dominance rate of the asset also increasing.