Coinbase Customers Can Now Earn High-Interest Defi Yields

Coinbase customers can now earn high-interest defi yields as the exchange announced that eligible customers in over 70 countries can now earn the yields so let’s read more in today’s Coinbase news.

Crypto exchange Coinbase announced that customers in more than 70 countries are able to earn yield with their crypto holdings via Defi. The exchange said in a statement:

“We are making DeFi more accessible, enabling eligible customers in more than 70 countries to access the attractive yields of DeFi lending on their DAI with no fees, lockups, or set-up hassle.”

As the goal of this move is Coinbase’s desire to make Defi even more customer-friendly and approachable, by using the DAI stablecoin, the customers can choose to earn DeFi yield. Customers’ DAI holdings will be deposited with Compunt Finance that the exchange described as an industry-leading Defi protocol with the interest being variable. For example, Compound’s rates for supplying DAI in October fluctuated between 2.8% and 5.3%:

“The higher rates reflect both the unique access to global liquidity and increased risk that can come with DeFi.”

Despite the risk, Coinbase remained bullish on the DeFi promise with the exchange adding that the huge potential to help and increase economic freedom, will provide a trusted and accessible way to take part. However, there’s one glaring omission in this idea. Despite rolling services out to 70 eligible countries like Germany and the UK, the defi yield is not yet available to the customers in the US. Coinbase CEO Briand Armstrong discussed the SEC threat to sue the exchange if it launched the yield-earning products dubbed Lend. Armstrong said there’s some really sketchy behavior coming out of the SEC and noted the fact that the SEC said Coinbase’s LEND will be a security that is criticized as a stance usually. Armstrong said:

“They refuse to tell us why they think it’s a security, and instead subpoena a bunch of records (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why.”

In the meantime, the SEC and its chair Gary Gensler, raised the red flag about the DeFi industry saying that the world is in need of more robust consumer protection laws:

“There’s a lot of lending going on. There’s a lot of trading going on. And without protections, I fear that it’s going to end poorly.”