Quick 🧵on staking your $ETH with Coinbase

1/ Staking your $ETH with @Coinbase currently yields 2.86% APY after their fee of 25% of the yield! For comparison, @LidoFinance quotes 3.6% after their 10% fee & my solo staked ETH is earning 3.83% before MEV.

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2/ You can wrap your Coinbase staked $ETH as $cbETH & withdraw it to your self custodied wallet. This gives you some protection against account issues. Wrapping/Unwrapping in Coinbase is free! & now you can put your cbETH to work in DeFi: swap/borrow/lend/stake/etc.

3/ 1 ETH != 1cbETH.  The conversion rate is 1.0691400640780829 and will always go up because cbETH's value includes all the staking rewards the token has ever accrued (minus the fees!). The rate is updated in real time here:

3/ 1 ETH != 1cbETH.  The conversion rate is 1.0691400640780829 and will always go up because cbETH's value includes all the staking rewards the token has ever accrued (minus the fees!). The rate is updated in real time here: https://api.exchange.coinbase.com/wrapped-assets/cbeth

Question: does the yield compound? As in, after the first year the cbETH you hold is worth 2.8% more, so the 2.8% of the next year is on top of that, and therefore a bit more etc. Or is it just an investment that increases at a fixed rate per year?

I'm aware this may be a super dumb question, but it does depend on the extra ETH being added to the staking operation, which I'm not sure is the case, so I would just like to be sure.