After discarding its plans to offer yield product LEND, top crypto exchange Coinbase announced Thursday that it is bringing its first DeFi yield product.
The new service will allow users in more than 70 countries to earn high yields from lending and borrowing crypto assets without incurring fees, lockups, or set-up hassle. Coinbase has first targeted stablecoin ‘DAI’ issued by MakerDAO.
“…accessing DeFi protocols can require expensive network fees and involve a somewhat complex user experience. Coinbase is making DeFi more customer-friendly and accessible,” the exchange said in a statement.
Coinbase has launched this service to simplify Ethereum’s (ETH) remittance fee issues and DeFi’s complex mechanics. Users would be required to deposit their DAI into DeFi lending protocol Compound Finance.
In addition, users can access the DAI entrusted to Compound Finance at any time, and lets users use their holdings for transactions and consumption.
Meanwhile, the APY will vary based on the rates from Compound. In October, the APY for supplying DAI fluctuated between 2.83% and 5.39% on Compound Finance.
“DeFi has tremendous potential to help increase economic freedom, and we’re excited to be able to provide a trusted and accessible way to participate. Today’s launch is just the beginning — we are continuing to explore ways to allow our customers to use a wider variety of assets and a greater number of DeFi protocols.”