Coinbase Launches USDC On-Chain Lending Service, Offering up to 10.8% APY

BlockBeats News, September 19th, according to The Block, cryptocurrency exchange Coinbase is launching a new feature that allows users to earn interest on their holdings of stablecoins through on-chain lending, with the current highest annualized interest rate reaching 10.8%.

This service is supported by the decentralized lending protocol Morpho, and fund allocation is operated through an on-chain treasury managed by Steakhouse Financial on the Base network. Base is an Ethereum Layer 2 scaling solution incubated by Coinbase.

Coinbase stated that when users deposit USDC, the system will create a smart contract wallet that disperses the funds into different lending pools to optimize returns. Users can immediately start earning interest and can withdraw at any time based on liquidity.

Coinbase emphasized that although this feature is based on DeFi protocols, it is designed to provide a familiar and easy-to-use experience for mainstream users through integration into the Coinbase application.