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What is CBETH

Tokens

1. What is cbETH ?

cbETH (Coinbase Wrapped Staked ETH) cryptocurrency introduction

cbETH is a cryptocurrency that is part of the Ethereum ecosystem. It is launched by the Coinbase platform and represents the stake of Ether (ETH) in the Ethereum 2.0 network.

Main features:

  1. Stake ETH ownership: cbETH represents the ownership of staked ETH in the Ethereum 2.0 network, allowing users to earn staking rewards without directly participating in the staking process.
  2. Ethereum-based token: cbETH is an ERC-20 token based on Ethereum, enabling transactions and transfers on the Ethereum network.
  3. Issued by Coinbase: cbETH is issued and managed by the Coinbase platform, ensuring its security and reliability.
  4. Decentralized and transparent: The transactions and holdings of cbETH are publicly transparent on the Ethereum blockchain, ensuring decentralization and security.

Summary: cbETH is a cryptocurrency based on Ethereum, representing the stake of ETH in the Ethereum 2.0 network. It is issued and managed by the Coinbase platform, offering security, transparency, and decentralization.

2. Who created cbETH ?

The cryptocurrency cbETH (Coinbase Wrapped S

3. Which venture capitalists invested in cbETH?

According to the information provided, Coinbase Wrapped Staked ETH (cbETH) is a cryptocurrency that was introduced by Coinbase as an Ethereum staking token. The information does not explicitly mention any specific venture capital firms that have invested in cbETH.

However, based on the information, Grayscale includes Coinbase Staked Ethereum (cbETH) in its Digital Large Cap Fund (GDIF) as part of its portfolio. This means Grayscale is one of the institutional investors in cbETH.

No other information mentions any other venture capital firms investing in cbETH. Therefore, based on the information provided, Grayscale is the only institution mentioned as investing in cbETH.

4. How does cbETH operate?

  1. Definition and Functionality:

  2. cbETH (Coinbase Wrapped Staked ETH) is a utility-wrapped token based on the Ethereum ERC-20 standard, exclusively minted by Coinbase.

  3. It represents the ETH staked through Coinbase, including the staked ETH and its accrued staking rewards.

  4. Liquidity Release:

  5. The primary function of cbETH is to release the liquidity of staked ETH. Users who stake ETH on Coinbase and receive ETH2 can wrap it as cbETH, allowing them to sell, send, or use the locked staked ETH outside the platform.

  6. Pricing Mechanism:

  7. The price of cbETH is not pegged 1:1 to ETH price, but represents the staked ETH plus all accrued staking interest.

  8. The value calculation formula for cbETH is: value of 1 staked ETH + value of all accrued staking interest since June 16, 2022.

  9. Use Cases:

  10. cbETH can be traded on the Coinbase platform, as well as sent and used outside the platform.

  11. cbETH can also be used in DeFi (Decentralized Finance) and other dapps (Decentralized Applications).

  12. Competitive Environment:

  13. According to Coinmarketcap data, there are currently six similar application tokens like cbETH, all designed to release liquidity of staked ETH. The largest in terms of market capitalization are stETH launched by Lido Finance and BETH by Binance.

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