Coinbase to offer non-US users to earn DeFi yield
Coinbase exchange hints that it may enter in Defi industry and started to give earning opportunities to the non-US users to make money through lending program.
Coinbase is the leading crypto exchange of the US and this exchange is popularly known to work under the compliance and guidelines of the regulatory framework imposed by the lawmakers of countries, so this exchange’s services are not limited to particular numbers of countries. Coinbase always tried to give those types of crypto offerings, which are better options for people to make money.
Through a blog post, Coinbase announced that the Coinbase exchange is influenced by the Defi industry because of huge numbers of use cases. And Defi allows handling funds without the involvement of the third-party centralized services.
As we know that Defi exchanges charges much and make it less affordable to those people, who are small investors or low-budget crypto traders. By considering this thing, Coinbase said that Coinbase users will be able to invest their funds to grab attractive Defi yields.
“Eligible users will now be able to access the attractive yields of DeFi from the comfort of their Coinbase account with just a few taps and without the network fees,” the Coinbase revealed.
Now this service of Coinbase to lend and earn DeFi yield started. All the non-US users can deposit Dai on the Compound Finance Defi platform and can make easy earnings between 2.83% and 5.39% per year ( however it is not fixed because there are many things, which caused a change in the yield rewards).
However, the Defi industry is still under the growing phase in terms of growth and also in terms of development to give better security to the funds locked in the Defi protocols. Coinbase said that they will monitor almost all the possible things and also figure out the possible risks to save the funds of the users.
More interestingly, Coinbase said that users will be able to trade with their Dai, even will remain locked in the Defi protocol and fees will be handled by the Coinbase exchange itself to make it free to the users.
“Today’s launch is just the beginning — we are continuing to explore ways to allow our customers to use a wider variety of assets and a greater number of DeFi protocols.”
Before this, Coinbase planned to launch the USDC lending program but the US Securities and Exchange Commission (SEC) said that they will not consider this lending product of Coinbase as a fair plan. After that, Coinbase announced to revoke the plan and said that “we will continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program announced below.”
So for now, the Defi lending program, Coinbase will allow this service to 70 countries including the United Kingdom, Germany, and Spain, and requires no fees. While excluding American users.
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