After Compound Finance, Now Coinbase is Offering Users 4% APY on USDC

2021-6-30 15:54

After Compound, now cryptocurrency exchange Coinbase has announced that it will allow users to earn 4% APY on USDC.

USDC is a popular stablecoin minted by Circle with a market cap of over $25 billion that runs on Ethereum, Solana, Algorand, and Stellar, and is expected to expand to other blockchains including Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos, and Tron as well.

This 4% Annual Percentage Yield (APY) is as of June 29, 2021, which the exchange notes “may change at any time before you start lending.”

Still, the rate is more than 50x the national average of a traditional savings account. The national average for a traditional savings account hovers around 0.07%, with high-yield savings accounts still falling well short of even 1%.

Pre-enrolling for the service is now open for eligible customers in the US, but with Coinbase not being a bank, the loaned crypto is not protected by FDIC or SIPC insurance. But it does offer a principal guarantee for the USDC in your Coinbase account.

On To The Next Billion Retail Users

This latest move from the largest cryptocurrency exchange in the US came just a day after the decentralized finance (DeFi) protocol Compound, which is also backed by the exchange, targeted institutional investors by announcing a 4% fixed interest rate on US dollars. Robert Leshner, co-founder of Compound Labs said,

“Excited to see big names like Coinbase enter the dollar yield space so soon after we announced Compound Treasury yesterday.”

He then explained that while Compound Treasury is entirely dollar-denominated, Coinbase Lend is for earning yield on a crypto, USDC.

When it comes to yield, Compound Treasury has one source, the Compound protocol itself, while in the case of Coinbase Lend, it is not disclosed, just that they are ‘verified borrowers' and by guaranteeing the principal, the exchange takes on this risk. Leshner further noted that Coinbase’s 4% APY is different from Comound’s 4% APR and is actually 3.92% APR.

While Coinbase Lend appeared to be focused on retail, Leshner said, Compound Treasury is focused on business customers and direct relationships. Leshner said,

“This is a phenomenal offering from Coinbase, and a huge point of validation for the entire industry. Wishing them great success, and the onboarding of the next billion retail users to the space.”

Interestingly, Compound Finance started the DeFi summer last year after introducing yield farming, and it just might start round 2 after introducing fixed interest rates for institutional investors.

The post After Compound Finance, Now Coinbase is Offering Users 4% APY on USDC first appeared on BitcoinExchangeGuide.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Compound Coin (COMP) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 4.7E-6 (-100%)

offering coinbase compound retail-focused lend treasury out

Источник: bitcoinexchangeguide.com

offering coinbase → Результатов: 126


CEO Coinbase: без институционалов не будет глобальной криптоэкономики

Команда популярной криптовалютной платформы Coinbase готовится к созданию собственного токена. Также представители проекта не исключают возможность открытия платформы для проведения первичных биржевых предложений (initial exchange offering (IEO)).

2019-9-11 13:49


Фото:

Cryptocurrency Custody Giants Battle For Lions Share of Institutional Market

The acquisition of Xapo by Coinbase has effectively created the largest digital asset custodian in the world, with nearly $8 billion in assets managed. But this has only intensified the competition as custodial stalwart BitGo has announced they will be offering Xapo customers one year of free service with a dedicated account manager and upRead MoreRead More.

2019-8-21 23:00


Ripple’s Adoption Is On The Rise As Coinbase Adopts XRP For Cross-Border Transfers: Should Holders Be Worried About Velocity?

Ripple’s XRP Adoption Is On The Rise As Coinbase Has Adopted It For Cross-Border Transfers, Should Holders Be Worried About Velocity? Coinbase, which is one of the largest crypto exchanges in the world and the main one in the United States, has recently decided to start offering a global remittance service. This new service will […]

2019-4-4 22:49


Crypto Giant Coinbase Launches Cross-Border Payments with XRP and USDC

Crypto exchange Coinbase is now offering cross-border payments service to enable customers to transfer funds using Ripple (XRP) and the stablecoin USDCoin (USDC). Coinbase made the announcement on its website, touting the service as fast and convenient: “You can now send money to any user with a Coinbase account around the world using XRP or USDC.

2019-4-2 16:43


Litecoin Foundation будет спонсором поединка UFC

Фонд Litecoin Foundation окажет поддержку мероприятию Абсолютного бойцовского чемпионата (UFC). Согласно опубликованному 26 декабря заявлению фонда, он станет «официальным криптовалютным партнером» титульного поединка в полутяжелом весе между Джоном Джоунсом (Jon Jones) и Александром Густафссоном (Alexander Gustafsson).

2018-12-28 11:59


Coinbase Rewarding Users to Learn Cryptocurrency Right Move for Industry

Coinbase, Cryptocurrency, 0x (ZRX)–Yesterday EWN reported on the development of popular U.S. based exchange Coinbase offering users a reward program to learn about cryptocurrency. In exchange for watching a series of educational videos or completing various tasks, which the company has marketed as an attempt to provide understanding and exposure for altcoins beyond the more […] The post Coinbase Rewarding Users to Learn Cryptocurrency Right Move for Industry appeared first on Ethereum World News.

2018-12-23 01:30


Coinbase Continues with “12 Days of Coinbase,” Offering USDC Stablecoin Support for Day 7

Coinbase decided to celebrate the holidays with 12 days of surprises for their users, going from December 10th to December 21st. There’s already been six days of festivities, ranging from the ability to use WeGift gift cards with crypto to establishing a Watchlist that is customizable to the user. On this seventh day of Coinbase, […]

2018-12-18 02:52


Фото:

Coinbase doubled its cryptocurrency lineup in 2018 — and that’s just the beginning

With yesterday’s addition of Zcash (ZEC), popular exchange service Coinbase has more than doubled its cryptocurrency lineup in 2018 – and by the looks of it, the trend is here to stay. Up until August, Coinbase supported a narrow inventory of cryptocurrencies on its flagship desktop and mobile apps, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), the last one of which was added last December.

2018-12-6 20:26


дальше еще 77 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Crypto’s winners and losers: who’s cashing in on the Bitcoin boom?

The cryptocurrency world is awash in new wealth as Bitcoin’s record-breaking climb above $90,000 propels the total value of digital assets past a staggering $3.2 trillion. Forbes estimates that 11 of the top crypto billionaires, whose holdings are predominantly liquid tokens and stocks, have collectively added $38 billion to their fortunes in 2024. Remarkably, $24 […]

Franklin Templeton expands its money market fund to Coinbase’s L2 Base network

Franklin Templeton has extended its OnChain US Government Money Market Fund (FOBXX) to Coinbase’s Ethereum-based layer-2 (L2) Base network. The expansion, announced on October 31, marks the first time a major asset manager has launched on Coinbase’s Base, showcasing Franklin Templeton’s strategic embrace of blockchain technology in traditional finance.