Coinbase Wrapped Staked ETH

cbETH functions as a liquid staking token, enabling users to:

Trade and Transfer: cbETH can be bought, sold, and transferred like any ERC-20 token.

Use in DeFi: It can be utilized in DeFi protocols for lending, borrowing, and yield farming.

Unwrap to ETH: Users can unwrap cbETH to retrieve their original staked ETH along with accrued rewards.

The token's utility is influenced by the staking rewards accrued over time, which are reflected in the cbETH to ETH conversion rate. 

cbETH is categorized as a liquid staking token. Unlike traditional staking, where assets are locked up, liquid staking allows users to stake their ETH and receive cbETH in return, which remains liquid and usable across various platforms.This provides flexibility and accessibility to staking rewards without the constraints of lock-up periods.

cbETH is a non-rebasing token, meaning the conversion rate between cbETH and ETH increases over time as staking rewards accumulate on the underlying staked ETH. This means that while the number of cbETH tokens in a user's wallet remains constant, the amount of ETH each cbETH represents grows over time.