Coinbase Now Lets DeFi Users Earn 2% on Their DAI Holdings
Coinbase continues to follow the DeFi trend, offering users 2% yield on their DAI holdings. In the realm of near-zero interest rates, Coinbase may get some additional retail attention.
- Customers in the US, UK, Netherlands, Spain, France, and Australia will get access to the product.
- DAI Rewards’ APY is much higher than USDC Rewards’ APY of 0.15%.
- Earning yields on stablecoins is more attractive than keeping money on a bank account.
- With Coinbase Earn, some users will be able to start earning for free.
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The product automatically yields 2% APY for every user with at least 1 DAI. The rewards will be distributed daily after the first five days since launch, which increases flexibility.
Coinbase is one of the most significant players with the blockchain space. Moreover, it’s arguably the most legally sound company focused on cryptocurrencies in the United States. Hence, the firm’s offer to provide a 2% yield on a stablecoin may get substantial attention from retail customers. Traditional savings accounts are far less attractive, yielding 1.11% at best.
Notably, the new DAI offering provides a much higher yield than the already existing USDC Rewards. Moreover, it’s more flexible in terms of reward distribution frequency.
Users, who don’t have DAI to start earning can use Coinbase Earn to get DAI for learning about the token and answering questions.
Importantly, the offering is only available to Coinbase users, Coinbase Pro is not included.