Author: Rémi Foult
This publication presents the Morpho community the opportunity to onboard cbETH Coinbase Wrapped Staked ETH - the second biggest LSD/LST by TVL - to Morpho-Aave-v3.
By adding cbETH as collateral on Morpho-Aave-v3, we can tap into the vast liquidity and market demand for cbETH. This integration will attract more liquidity to the Morpho platform.
cbETH is the second largest LST by market cap: https://dune.com/queries/46128/90778
cbETH presents an excellent opportunity for inclusion on Morpho-Aave-v3 due to its significant market capitalization and deep liquidity across prominent DEXs. As the second-largest staked ETH token, cbETH offers a reliable and secure option for users seeking leveraged staking strategies.
cbETH was built by Coinbase, a leading cryptocurrency exchange and custodian known for its commitment to regulatory compliance and user security. Coinbase’s presence in the crypto ecosystem adds a layer of trust and credibility, attracting both institutional and retail users. Furthermore, Coinbase has actively engaged with regulators to obtain clarity on crypto regulations in the United States. Their efforts in navigating the complex regulatory landscape and advocating for sensible regulations have been instrumental in fostering a healthy and sustainable environment for the broader crypto industry. By including cbETH as collateral on Morpho-Aave-v3, we embrace not only a highly liquid and reliable asset but also contribute to the overall stability and growth of the crypto ecosystem, aligning with Coinbase’s mission of building an open financial system for the world.
cbETH is an ERC-20 token on Ethereum that represents underlying staked ETH on the Coinbase platform.
The value of cbETH increases over time due to the accumulation of Beacon Chain rewards, priority fees, and MEV rewards earned by Coinbase node operators. This productive yield feature makes cbETH an attractive option for borrowing and leveraging in Morpho-Aave-v3.
Base cbETH Yield
Users gain 75% of the standard Ethereum staking APR at baseline.
Queued ETH Yield
Redemption of cbETH for ETH is available through Coinbase and the queue time depends on the beacon chain withdrawal queue.
cbETH is soft pegged to it’s underlyng staked ETH so is subject to market forces. Price deviation from peg brings arbitrage opportunity by claiming redemption at Coinbase which processing time depends depends on beacon chain exit queue length.
cbETH liquidity is spread accross Uniswap, Curve, Maverick and Balancer
A 10000 cbETH to ETH swap on 1inch has a 1.2% price impact.
There is approximately 10m$ average volume per day onchain.
- cbETH Oracle: cbeth-eth.data.eth 0xf017fcb346a1885194689ba23eff2fe6fa5c483b
Morpho can uniquely suggest parameters and these should only be seen as a starting point. We believe that the cbETH market presents a similar quality to the rETH market and similar parameters are worthwhile.
refine MIP for snapshot vote
Whitepaper - https://www.coinbase.com/cbeth/whitepaper
Github / source code - Source code | Github
Ethereum contracts - Coinbase Wrapped Staked ETH | Etherscan
Chainlink oracle - cbETH / ETH Chainlink Price Feed
Twitter - https://twitter.com/coinbase
Blog - https://blog.coinbase.com/
Support - https://help.coinbase.com/