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March 26, 2020

Coinbase Launches New Way to Earn Interest on Crypto, Supports Wrapped Bitcoin, Ethereum and ERC20 Tokens

By Daily Hodl Staff

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Crypto exchange giant Coinbase is giving its users a new way to earn interest on their cryptocurrency with the integration of decentralized finance (DeFi) apps into the platform’s digital wallet.

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Coinbase Wallet users can now directly access DeFi services like Compound and dYdX to lend their crypto assets for interest.

With the new integration, Coinbase says users can now compare the different rates of different providers, invest their crypto assets, as well monitor balances and interests they earned, all using their Wallet and without opening a web browser.

“With this new lending experience, you’re just a few taps away from putting your money to work. Pick a coin to lend, pick a smart contract, and enter the amount you wish to lend. Your crypto is then deployed directly to the smart contract to start earning interest.”

Coinbase says DeFi lending currently supports Ethereum and Ethereum-based token Wrapped Bitcoin (WBTC), which is pegged 1:1 with Bitcoin (BTC).

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Other ERC20 tokens currently supported include USD Coin (USDC), Dai (DAI), Basic Attention Token (BAT), Augur (REP) and 0x (ZRX).

Lenders can earn interest rates ranging from 0.03% to 4.17% annually, depending on the coin and contract.

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