Select Page

After Compound Finance, Now Coinbase is Offering Users 4% APY on USDC

After Compound Finance, Now Coinbase is Offering Users 4% APY on USDC
This article is added for educational purpose only. All credit goes to the respected author of this article. All In One Crypto App do not hold any liabilities of this article. You can get the source link at the end of the article content.

After Compound, now cryptocurrency exchange Coinbase has announced that it will allow users to earn 4% APY on USDC.

USDC is a popular stablecoin minted by Circle with a market cap of over $25 billion that runs on Ethereum, Solana, Algorand, and Stellar, and is expected to expand to other blockchains including Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos, and Tron as well.

This 4% Annual Percentage Yield (APY) is as of June 29, 2021, which the exchange notes “may change at any time before you start lending.”

Still, the rate is more than 50x the national average of a traditional savings account. The national average for a traditional savings account hovers around 0.07%, with high-yield savings accounts still falling well short of even 1%.

Pre-enrolling for the service is now open for eligible customers in the US, but with Coinbase not being a bank, the loaned crypto is not protected by FDIC or SIPC insurance. But it does offer a principal guarantee for the USDC in your Coinbase account.

On To The Next Billion Retail Users

This latest move from the largest cryptocurrency exchange in the US came just a day after the decentralized finance (DeFi) protocol Compound, which is also backed by the exchange, targeted institutional investors by announcing a 4% fixed interest rate on US dollars. Robert Leshner, co-founder of Compound Labs said,

“Excited to see big names like Coinbase enter the dollar yield space so soon after we announced Compound Treasury yesterday.”

He then explained that while Compound Treasury is entirely dollar-denominated, Coinbase Lend is for earning yield on a crypto, USDC.

When it comes to yield, Compound Treasury has one source, the Compound protocol itself, while in the case of Coinbase Lend, it is not disclosed, just that they are ‘verified borrowers’ and by guaranteeing the principal, the exchange takes on this risk. Leshner further noted that Coinbase’s 4% APY is different from Comound’s 4% APR and is actually 3.92% APR.

While Coinbase Lend appeared to be focused on retail, Leshner said, Compound Treasury is focused on business customers and direct relationships. Leshner said,

“This is a phenomenal offering from Coinbase, and a huge point of validation for the entire industry. Wishing them great success, and the onboarding of the next billion retail users to the space.”

Interestingly, Compound Finance started the DeFi summer last year after introducing yield farming, and it just might start round 2 after introducing fixed interest rates for institutional investors.

The post After Compound Finance, Now Coinbase is Offering Users 4% APY on USDC first appeared on BitcoinExchangeGuide.

 

Source: BitcoinExchangeGuide

 

All In One Crypto App presents a unique dynamic crypto course that allows you to become a profitable and successful trader. Download Now

Don't forget to share your review/suggestions for the android app.

All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.es here

Categories

Select a Sub Category
category
6151ef730dac5
0
1
Loading....

Reviews

All In One Crypto App

Made $234 profit with Free Signals from $50

This is the best useful app on my phone. Started trading with $50 and in 5 weeks I was up to $234 just with the free signals. I will recommend it to any new person that wants to try trading crypto. Link to Review

Asoluka Chimdindu

Free User
All In One Crypto App

Good Support

This app is one of the best for crypto currency trading signal for experts and beginal with free and premier with auto follow trading bot all the signal is excellent with accurate technical analysis and fundamental I really like the way they guide and support. Link to Review

olaplus olaplus

Premium User
All In One Crypto App

Accurate Trading Signals

I was premium member of this channel back in 2018 when there was no app. Thr signals were too good, more than 90% accuracy. Now with this app and newly introduced auto trading bot, it will be awesome. Too the moon. Link to Review

Yogesh Patil

Premium member
All In One Crypto App

Awesome and Accurate Signals

Very glad to use this app. The crypto signals was awesome and accurate with detailed explanation and visual information. The admin also helpful and nice. Link to Review

soon cheong

Free User
All In One Crypto App

User Friendly App

Signals are great. I love it. App also friendly to use… Nice job guys Link to Review

Olawunmi Dilureni

Premium Subscriber