Coinbase Wallet offers three options for earning on your ETH: staking, cbETH liquid staking, and rETH liquid staking.
With Ethereum (ETH) staking, anyone can lock their ETH to put it to work on the network. This allows you to participate in consensus, validate transactions, and create blocks, thereby securing the network. Doing this work earns stakers ETH rewards, while failing to follow protocol rules can result in lost ETH due to penalties.
Ethereum staking
What you need to know about staking ETH on Wallet.
Staking or liquid staking | • Staking is recommended for most users • When staking, your ETH is deposited into a staking smart contract and staked onchain • When you stake via a deposit instead of a liquid staking swap, you avoid the risk of frontrunning or movements in the liquid staking token's price • Liquid staking may be a better option if you'd like the flexibility to use your staked tokens in DeFi or swap your position at any time |
Staking length | • The longer you stake, the more you can earn • Most stake long enough to earn back any network fees they paid to stake their ETH originally |
The staking process | • ETH is deposited into a staking smart contract and is staked to Coinbase Developer Platform validators that perform work on the Ethereum network to earn rewards. Any amount can be staked, you don't need 32 ETH* • You'll receive soulbound tokens in your Wallet that represent your staked position and withdrawal rights. The token is cbwsETH and it can be viewed in your Wallet using a block explorer such as Etherscan. This token is exclusive to Coinbase Wallet and it cannot be traded or sent. They are non-transferable and are only used to represent the ownership of your staked position, including withdrawal rights •Your rewards are automatically restaked and your reward balance updates daily around 1:00 pm UTC. The rewards are not sent to your balance • To claim ETH rewards, you must unstake. After the unstake transaction has been processed, you can claim your original principal and associated staking rewards |
Tax implications | • We recommend consulting a tax advisor as tax implications vary by jurisdiction |
Risks | • No guarantee of staking rewards: Staking rewards come from the underlying crypto network, not Coinbase Wallet • Protocol rules and network conditions can change, so past rewards do not necessarily predict future staking payouts
• Slashing events are extremely rare, but they are not impossible, so you should understand the risks before staking your assets |
*There is no 32 ETH minimum because your stake is combined with other Coinbase Wallet users' stake. We use Kiln's smart contracts to help aggregate funds. Learn more about Kiln here.
Staking ETH using Coinbase Wallet
To stake ETH using CB Wallet:
Open your CB Wallet and navigate to the Ethereum asset detail page.
Locate the Stake ETH button and follow the prompts to stake your ETH.
On the confirmation page, select Staking method to choose your method.
Select View Transaction to track the transactions as it can take a few minutes to process. Once it’s complete, you will see your staked balance on the DeFi tab or on the Ethereum asset detail page.
Unstaking ETH using Coinbase Wallet
To unstake:
Navigate to the DeFi tab or the Ethereum asset detail page.
Select the Unstake button.
Enter the amount you want to unstake, and confirm the transaction. It usually takes between 1-4 days for an unstake transaction to process. The timing can vary depending on network conditions.
Once your unstake transaction has been processed, you can claim your funds. Unstaking and claiming are two separate blockchain transactions that will both require gas fees. You'll be able to claim the same quantity of ETH as when the unstake transaction was processed, regardless of price changes.
Liquid ETH staking
What you need to know about liquid staking on Coinbase Wallet.
Staking rewards | • You won't receive ETH reward payouts • Your rewards accrue in the value of the cbETH token • To claim your rewards, you'll have to unstake back to ETH • The price of the cbETH utility token is intended to reflect the price of the underlying staked ETH plus any accrued interest • If you notice cbETH being worth slightly more then ETH, that's because of the staking rewards the token has earned |
Fees | • You will have to pay a gas fee, which is a fee paid to the miner for processing crypto transactions and securing the respective network - this is different from staking on Coinbase.com • Coinbase takes a commission on rewards received for holding cbETH – whether staking through Wallet or Coinbase.com |
Using cbETH as collateral in DeFi | • cbETH is supported on multiple leading DeFi protocols • You can potentially earn extra yield by depositing your cbETH into lending pools like Compound, Aave, Silo or through yield aggregators like Yearn Finance, but we recommend you do your own research before participating • Learn more about how to use your cbETH in DeFi here |
Unstaking your ETH | • Unstake by selecting the Unstake button and swapping back to ETH • You'll get ETH plus any ETH staking rewards you earned while staking • Unstake by navigating to your cbETH balance or the DeFi tab in Coinbase Wallet • The unstaking is done via a swap |
Calculating projected earnings | • Projected earnings are an estimate for how much you’ll earn over the next year • The value is calculated by multiplying the amount of cbETH by the current APY • The estimate does not account for fluctuations in the price of ETH or cbETH • APYs are determined by the network and can change over time |
Error: I need more ETH to cover network fees | • Staking ETH requires a network fee, also known as a "gas fee" • If you do not have enough in your wallet, you will need to add more ETH to cover the fee • Select Top up your ETH to add more to cover your transaction |
Selecting the 25%, 50%, or MAX option | • Transactions on Ethereum require a gas fee, paid in Ethereum, to process the transaction • When you click 25%, 50%, or MAX, we deduct an estimated gas fee so your transaction will be successful • When selecting MAX, it will not be your entire ETH balance due to the estimated gas fee |
Coinbase Wrapped Staked ETH (cbETH)
Coinbase Wrapped Staked ETH (cbETH) is a utility token that represents ETH staked through Coinbase. Over time, the price of cbETH will likely deviate from ETH because cbETH represents 1 staked ETH plus all of its accrued staking interest starting from when cbETH's conversion rate and balance were initialized (June 16, 2022 19:34 UTC). cbETH is minted exclusively by Coinbase. Read more about cbETH in the cbETH Whitepaper.
On Coinbase Wallet, cbETH is acquired through a trade, also known as a “swap.” We find you the best price through our integration with our DEX aggregators / partners, and optimize for low gas fees. cbETH’s current APY is viewable in-product.
Rocket Pool ETH (rETH)
Rocket Pool is a decentralized and trustless Ethereum liquid staking provider. Through Rocket Pool, anyone can stake to a network of decentralized node operators. Rocket Pool is audited by Sigma Prime, Consensus, and Trail of Bits, along with receiving a perfect rating from the Ethereum Foundation.
Rocket Pool ETH (rETH) is the Rocket Pool protocol's liquid staking token. The rETH token represents ETH that is being staked and earning rewards within Ethereum Proof-of-Stake. As Rocket Pool node operators stake Ethereum, the resulting rewards increase the value of rETH relative to ETH, allowing holders to passively earn yield. It is a fully liquid token, you can swap the token or use it in DeFi at any time.
On Coinbase Wallet, rETH is acquired through a trade, also known as a “swap.” We find you the best price through our integration with our DEX aggregators / partners, and optimize for low gas fees. rETH’s current APR is viewable in-product.
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