Home Coinbase Coinbase Introduced DeFi Yields for Dai

Coinbase Introduced DeFi Yields for Dai

Decentralized Finance Yields or DeFi Yields, described by the exchange as a new way for Coinbase's global customers to put their crypto to work and earn yield while making DeFi more accessible.

Coinbase has Introduced DeFi Yields for Dai Stablecoin iBase Trading.
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Decentralized Finance Yields or DeFi Yields, described by the exchange as a new way for Coinbase’s global customers to put their crypto to work and earn yield while making DeFi more accessible. It will allow eligible customers in more than 70 countries worldwide to achieve results on their part held Dai without incurring fees, lockups, or set-up hassle, among other things.

Decentralized Finance (DeFi) is rapidly gaining popularity as a use case for blockchain technology and cryptocurrencies. It enables individuals to use crypto apps without using a centralized intermediary.

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Individuals in more than 70 countries can now benefit from DeFi’ yields,’ backed by the Dai stablecoin.

Coinbase and DAI Stablecoin

To maintain a USD 1.00 value, Dai (DAI) is a decentralized stablecoin that runs on the Ethereum blockchain. At the same time, US dollars does not back Dai held in a bank account. It distinguishes it from centralized stablecoins. A slew of assets instead supports the Maker platform. Important: If the Dai credit system modifies or shuts down, Dai holders may convert their Dai into Ethereum using the Maker platform.

Individuals of Coinbase will now be able to receive annual percentage yields (APY) ranging from 2 to 6 percent on their Dai, which was launched today. When consumers earn DeFi yields, their Dai is transferred into Compound Finance, a DeFi marketplace.

When it comes time to determine the returns, the exchange will utilize their annual percentage yields (APY). Also included are the gas fees associating with accessing the DeFi protocol, which Coinbase subsidizes.

DeFi Hazards

According to Coinbase, all held assets will be available to you Coinbase at all times. It allows clients to continue to spend and trade as usual during this period.

This digital asset is pegged to the value of one US dollar. Thus it is a stablecoin. According to the Maker protocol, it is the world’s first crypto-collateralized and decentralized stablecoin, making it the first string of its kind in the history of the cryptocurrency industry.

When asked about the hazards associated with DeFi, the exchange stated that the higher prices reflected the unique access to global liquidity and the additional risk associated with using the technology.

According to the company, some users who use the yield tool may experience some losses. Which cautioned that it could not guarantee against such losses.

It is currently available to Coinbase customers who meet the eligibility requirements in over 70 countries. It includes the United Kingdom, Germany, and Spain. Coinbase users can start by visiting the Dai asset page in the Coinbase app or Coinbase.com.

The lack of US clients may be related to the exchange’s recent SEC run in over a similar yield product called “Coinbase Lend” – the Circle cryptocurrency exchange’s USDC stablecoin.

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

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Sophia Vasquez is a journalist and writer for iBaseTrading. She has over 10 years of experience writing about Business news and has been covering the blockchain and cryptocurrency space since 2011.