What is wrapped cbETH?

Could you please clarify what exactly is wrapped cbETH? As I understand, it's some form of derivative or tokenized asset related to Ethereum, but I'm not quite sure how it differs from other wrapped tokens or how it functions within the crypto-finance ecosystem. Is it a tool for traders to hedge against certain risks? Or does it serve a particular purpose in decentralized finance applications? I'm particularly interested in understanding its underlying mechanics and how it interacts with the broader crypto market. Could you elaborate on these points, please?