According to online news sources, the crypto exchange company Coinbase Global Inc. has reportedly launched a decentralized finance (Defi) yield product, which will be the company’s first. Through this yield product, Coinbase users from all over the world would be able to earn interest from borrowing and lending cryptocurrency assets. The company has planned to start with a stablecoin called DAI, which is fixed according to the USD. The users will be able to deposit their DAI into the Defi protocol called Compound Finance to get access to attractive yields. It has been found that in October, the annual percentage yield for the program hovered between 2.8% to 5.4%.
The company made the announcement through their blog on December 9 and said that through this product, the global Coinbase users would be able to earn high yields. Coinbase is working to make the Defi space more accessible to everyone. DeFi protocols are known to make the user experience quite complex and the users also end up paying expensive network fees. With this move, eligible users from more than 70 countries will be able to access attractive DeFi-lending yields on their DAI. The process has been streamlined for them and they will face no hassle of set-up, lockups, and no additional fees either.
The company had come out with another such product called Lend that had been called off before the launch. In Lend, the crypto holdings of the users were supposed to be lent to Coinbase. In the new product, however, the users would be able to lend the crypto holding to Compound Finance