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Coinbase Introduces Dai in 70 Countries

For consumers in more than 70 countries, Coinbase has launched DeFi 'yields' utilizing the Dai stablecoin.

Coinbase Introduces Dai in 70 countries iBase Trading.
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For consumers in more than 70 countries, Coinbase has launched DeFi ‘yields’ utilizing the Dai stablecoin.

DeFi Yields, which the transfer describes as “a fresh perspective for Coinbase’s global consumers to place their crypto to work and generate yield”. In addition, it also means “making DeFi more accessible”. This allows eligible consumers in more than 70 countries to garner yields on their held Dai. Importantly with “no charges, lockups, or set-up hassle.”


Coinbase Defi and Dai?

People can borrow, lend, and trade without the use of a centralized mediator with DeFi. It’s one of the most common applications of blockchain and cryptocurrencies. This has an estimated $51 billion placed into DeFi lending mechanisms. High yields have made lending exceptionally popular.

With a user-friendly experience that avoids network fees, Coinbase is working to make DeFi protocols smooth and economical for its clients. According to Kaw, DeFi can be earned on Dai, a stablecoin tethered to the US dollar.

According to Kaw, these higher prices represent both the unique access to global liquidity and the extra risk that DeFi can bring. Despite the fact that Coinbase monitors these processes on a regular basis, we cannot guarantee that no losses will occur.

Users that want to earn a DeFi yield deposit their Dai with Compound Finance, a DeFi protocol. The annual percentage yield (APY) is calculated using Compound Finance rates and updated as market conditions change. In October, the APY for supplying DAI ranged from 2.83 percent to 5.39 percent.

The returns will then be calculated using the exchange’s APY rates. Coinbase will also reimburse the gas costs associated with using the DeFi technology.

Held assets will “remain available to you on Coinbase at all times,” according to Coinbase, allowing consumers to “spend and trade as usual.”

Is it Risk-Free?

The exchange was eager to point out the dangers of DeFi, stating that the higher rates “reflect both the unique access to global liquidity and the additional risk that can accompany DeFi.”

It also stated that it cannot guarantee that users will not suffer losses as a result of using the yield option.

The Dai stablecoin is a cryptocurrency asset that is “pegged” to the US dollar’s value. According to the platform, it is the world’s first crypto-collateralized and decentralized stablecoin.

Eligible Coinbase users in more than 70 countries, including the United Kingdom, Germany, and Spain, can now access the functionality. Coinbase users can start by going to the Dai asset page in the Coinbase app or on Coinbase.com.

However, users in the United States are presently unable to utilize the function, which could be due to the exchange’s recent run-in with the SEC over a similar yield product called “Coinbase Lend” that it sought to employ—the Circle-operated USDC stablecoin.

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Tanya Smith is an editor at iBaseTrading. With M.A. in Journalism and Mass Communication, she is pursuing her dream of creating a positive difference in the media industry. She also enjoys Fashion and Travelling.