Coinbase Wrapped BTC (Base)

cbBTC

cbBTC is a DeFi-friendly version of Bitcoin backed 1:1 by BTC held by Coinbase.

Risk Rating
Good
What is Coinbase Wrapped BTC (Base)?
What we like
cbBTC provides a secure and transparent way to leverage Bitcoin within the DeFi ecosystem by maintaining a strict 1:1 peg with native BTC.
What we like less
The reliance on Coinbase for custody and the limited secondary market liquidity pose potential risks. Further, Coinbase has not yet released its Proof of Reserves for the underlying BTC custodied.
What it means for you
Users can confidently utilize their Bitcoin in DeFi applications, benefiting from enhanced liquidity and financial opportunities while ensuring their assets are securely backed.

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Information
Blockchain
  • Base
Info
  • Asset Type: ERC-20
Key Metrics
Risk Assessment
Good
Asset Strength

cbBTC is a low-cap asset with questionable collateral reserves. This asset depends on a centralized entity for custody services.

Dependencies

Coinbase Wrapped BTC (Base) has no dependencies.

Asset Tokenomics

cbBTC has a fixed supply. cbBTC is a DeFi-friendly version of BTC that is backed 1:1 by BTC custodied by Coinbase.

Things to know about cbBTC

What is cbBTC?

cbBTC, or Coinbase Wrapped BTC, is an ERC20 token fully backed 1:1 by native Bitcoin (BTC) held securely by Coinbase. Each cbBTC in circulation is matched by an equivalent amount of BTC held in Coinbase’s custody solutions, including cold storage. This ensures that cbBTC remains a reliable and transparent representation of Bitcoin, allowing users to seamlessly integrate their BTC holdings into the DeFi ecosystem.

How does cbBTC work?

cbBTC operates through a minting and burning process managed by Coinbase using audited and secure Ethereum smart contracts. When users deposit BTC into their Coinbase accounts, an equivalent amount of cbBTC is minted and sent to their Ethereum or Base network wallet addresses. Conversely, when users wish to redeem their cbBTC for BTC, they deposit the cbBTC back into their Coinbase accounts, where it is burned and the corresponding BTC is released from Coinbase’s reserves. This process ensures that the total supply of cbBTC always matches the amount of BTC held in custody, maintaining trust and transparency.

How is cbBTC backed 1:1 with BTC?

cbBTC is backed 1:1 with native BTC held by Coinbase in secure custody solutions, including both hot and cold wallets. Coinbase ensures that for every cbBTC token minted, there is an equivalent amount of BTC reserved and securely stored. The BTC reserves are managed by Coinbase’s investment manager, E.Q. Capital, and are protected by rigorous security measures, including multi-signature access and regular internal audits. This robust backing mechanism guarantees that cbBTC holders can redeem their tokens for the underlying BTC at any time, maintaining the token’s stability and reliability.

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cbBTC Pools
Moonwell BTC Lending
1.4%
Yield
$51M
TVL
Risk
B
Protocol
Moonwell
Chain
Base
Harvest-Moonwell BTC Lending
3.6%
Yield
$4M
TVL
Risk
C
Protocol
Harvest
Chain
Base
ExtraFi BTC Lending
7.9%
Yield
$2M
TVL
Risk
C
Protocol
ExtraFi
Chain
Base
Beefy-Uniswap BTC-ETH Market Making
16.8%
Yield
$244K
TVL
Risk
C
Protocol
Beefy
Chain
Base
Arcadia BTC Lending
2.5%
Yield
$167K
TVL
Risk
C
Protocol
Arcadia
Chain
Base
Beefy-Aerodrome BTC-USD Market Making
15.2%
Yield
$11K
TVL
Risk
C
Protocol
Beefy
Chain
Base

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