cbETH is a wrapper around Coinbase's own staking service. Coinbase runs the validators, holds the ETH and issues a token representing the claim, which trades on secondary markets and appears in some DeFi protocols.
The commission
A 25% cut of staking rewards is two and a half times what a professional operator charges and 15 percentage points above Lido. On a multi-year hold that difference is substantial, and nothing in the product justifies it beyond the issuer's regulatory standing.
What you get in return
A counterparty that files audited financial statements, holds licences in major jurisdictions and can be assessed like any other public company. For an institution whose mandate excludes DeFi protocol risk, that is the entire point, and cbETH is one of the few instruments that satisfies it.
Centralisation
One operator, one issuer, one point of failure. Redemption requires Coinbase to process it. If your reason for staking through a liquid token is avoiding custodial dependence, cbETH does not deliver that in any meaningful sense.
Who should use it
Regulated institutions with mandates that require a corporate issuer. Individuals should use stETH, rETH or a professional staking operator and keep the difference in commission.