Coinbase Wrapped DOGE ("cbDOGE") is a token that is backed 1:1 by native Dogecoin (DOGE) held by Coinbase, meaning that for all cbDOGE in circulation, there is an equivalent amount of DOGE held in a secure custody solution (including cold storage) provided by Coinbase. Wrapped assets, like cbDOGE, are transferable tokens that are redeemable for the underlying asset. Coinbase customers can unwrap cbDOGE and redeem a corresponding amount of the underlying DOGE simply by depositing the cbDOGE into their Coinbase accounts. cbDOGE is built to be seamlessly compatible with DeFi applications, giving customers the option to tap into DeFi and unlock financial utility.
cbDOGE removes a key point of friction by allowing customers to use DOGE they already hold in new ways onchain. cbDOGE is built to be seamlessly compatible with DeFi applications, so users can now tap into novel DeFi use cases like providing their DOGE as liquidity to DeFi protocols, using it as collateral to borrow other crypto assets, or spending it as a payment method. Wrapped assets like cbDOGE are a mature concept in the crypto world, helping to bring more liquid assets onchain and facilitate an expansive financial ecosystem.