Coinbase, a leading crypto exchange based in the U.S., has announced that it has launched yield earning for its customers from over 70 countries, with a new programe for exposure to decentralized finance (DeFi).
“DeFi has tremendous potential to help increase economic freedom, and we’re excited to be able to provide a trusted and accessible way to participate.” the exchange said.
This move from Coinbase follows its recent stand on its perceived uncertainty, with regards to Layer 1 blockchains such as Solana, Avalanche, Terra, and Binance Smart Chain. In a blog statement from late November this year, Coinbase said:
“While the future is uncertain, everyone can take solace in the knowledge that there are so many smart teams dedicated to tackling the most challenging problems that open, permissionless networks face.”
True to that hint, Coinbase now opened access to DeFi through its own platform, except there is a caveat for this strategic move: it will not be available for its U.S. customers, at least for the moment.
“[…] we are making DeFi more accessible, enabling eligible customers in more than 70 countries to access the attractive yields of DeFi lending on their DAI with no fees, lockups, or set-up hassle,” Coinbase stated.
There is no guaranteed yield rate (APY), however, and Coinbase has not mentioned this particular detail in their blog post announcing the new DeFi yield program. Coinbase, however, did acknowledge how the rates, which have fluctuated between 2.8% and 5.3% according to Compound’s published data, reflect “both the unique access to global liquidity and increased risk” that the DeFi sector offers.
Coinbase users may now participate and opt in on the DeFi yield program by visiting the platform’s DAI asset page. Coinbase requires users to have an unspecified minimum amount of DAI in their Coinbase wallets.
In related news, Coinbase has also launched support for hardware wallets, with an initial integration with Ledger, enabling users to have self-custody and full control over assets. This feature will be available through desktop and browser-based access, while mobile support will be deployed soon, following the integration’s soft launch in Q1 2022.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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