Coinbase Wrapped Staked ETH
Crypto Overview
Purpose and Utility
cbETH is a liquid staking token issued by Coinbase that represents staked ETH on the Ethereum network. When users stake ETH through Coinbase, they receive cbETH as a representation of their staked position. This allows users to maintain liquidity while their original ETH remains staked.
Business Model
The token serves as a wrapped representation of staked ETH, allowing users to trade or transfer their staked position without unstaking. Coinbase manages the staking infrastructure and distributes staking rewards. The underlying staking mechanism helps secure the Ethereum network through Proof of Stake validation.
Real-World Adoption
As of 2024, cbETH has significant adoption with over $1.5 billion in total value locked. The token is actively traded on major exchanges and used within various DeFi protocols.
Platform Development
The token is maintained by Coinbase, one of the largest regulated cryptocurrency exchanges. Regular updates and improvements are made to the staking infrastructure and token contracts.
Token Distribution
cbETH is minted when users stake ETH through Coinbase, maintaining a 1:1 relationship with staked ETH plus accrued rewards. There is no pre-mine or founder allocation.
Crypto Impact
To assign a comfort level investing in Coinbase Wrapped Staked ETH from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Coinbase Wrapped Staked ETH.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.