By Rhea Kaw, Senior Product Manager
Today we’re introducing a new way for Coinbase’s global customers to put their crypto to work and earn yield. We are making DeFi more accessible, enabling eligible customers in more than 70 countries to access the attractive yields of DeFi from their Dai with no fees, lockups, or set-up hassle.
Access DeFi from the comfort of your Coinbase account
Decentralized Finance (DeFi) is becoming one of the most popular use cases for blockchain technology and cryptocurrencies because it enables people to access crypto applications without the need for a centralized intermediary.
However, accessing DeFi protocols can require expensive network fees and involve a somewhat complex user experience. Coinbase is making DeFi more customer friendly and accessible. 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.
When you opt in to earn DeFi yield, your Dai is deposited into Compound Finance, an industry-leading DeFi protocol. The offered APY varies based on the rates from Compound and will automatically update to reflect changes in the market. Compound’s rates are variable — as an example, during the month of October, the APY for supplying DAI fluctuated between 2.83% and 5.39%.
These higher rates reflect both the unique access to global liquidity and increased risk that can come with DeFi. Though Coinbase…