2% dollar savings - What is Coinbase trying to do with its lending service?

2% dollar savings - What is Coinbase trying to do with its lending service?

By NassiroV | CryptoPress360 | 31 Jul 2020


Cryptocurrency Exchange Coinbase and Barclays Team Up

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The Coinbase exchange platform has been offering a lending service for several months to generate interest on your cryptos. Lastly, Coinbase just announced the addition of DAI to its lending service, offering 2% annual interest.

2% interest on the DAI

The news was published through a statement on the official Coinbase blog. Thus, since yesterday, DAI holders on the Coinbase platform benefit from an annual interest of 2% .

Obviously, this rate can be subject to variation , like all similar services offered in the crypto industry. When launched, this service will be available to residents of the United States ( excluding Hawaii ), United Kingdom, Netherlands, Spain, France and Australia.

A questionable rate

Coinbase presents this service as an alternative to the classic financial system, whose rates are at the lowest:

“With yields on savings accounts and government bonds at historically low levels, earning rewards on stablecoins like DAI and USDC stands out as an alternative way to passively generate income on cryptos held on Coinbase. "

Users will be eligible from 1 DAI on their account. The initial payment will be made after 5 days, then every day from that time.

If the initiative can be welcomed , the posted rate remains really derisory , compared to the solutions for example offered by DeFi.

The rate offered for DAI remains surprising, knowing that Coinbase offers a rate of only 0.25% on USDC, the stablecoin it originated from.


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NassiroV
NassiroV

Hi, and welcome to my blogs :)! ​I’m Nassir, a thirty-something guy who loves to travel and write, especially about Crypto and Blockchain. I have been blogging and trading cryptocurrencies for a while. I hope that you find my articles beneficial to you.


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