Coinbase To Utilize DeFi For Coinbase Wallet Users

Coinbase rolls out support for decentralised finance, paving the way for interest gains for Coinbase users.

Coinbase has announced on March 25th they will add support for clients to lend out and earn interest on their crypto via decentralised finance (DeFi) applications on the Coinbase wallet dashboard. The Update will allow users to access applications directly, check interest rates and balances all on the Coinbase wallet dashboard.

Decentralised finance (DeFi) has become very popular in the crypto space, with many preferring it to traditional savings accounts because of the higher interest returns.

How does it work?

DeFi borrowing relies upon smart contracts generated on the Ethereum blockchain, with the smart contract securing the funds for the duration of the loan. Users can loan out Ethereum or ERC20 tokens with interest rates varying between application.

Meaning if you place 10 Ethereum into a 30-day lock-up loan for 10% APR, you’d gain 1 Ethereum in return. (Example only)

DeFi is one of the most popular sectors in the crypto space, with many users flocking to earn rewards on their investments and HODL’s.

Expect the first rollout in the coming weeks with the updates first happening on the IOS Coinbase application.

Till the next time,

Andy

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