Ethereum News Today – October 3

Ethereum
  • Coinbase Will Now Allow Users to Earn Interest on USDC Deposits
  • The Interest Rate of Ethereum DeFi Is Four Times That of Coinbase

Ethereum News Today – Coinbase – one of the largest trading platforms in the world – announced its latest product: interest on stablecoin USDC deposits. This is a great offer for digital currency traders whose stablecoins does not yield any profits. Nevertheless, this presumably tantalizing offer is easily outperformed by DeFi, Ethereum decentralized finance apps.

Coinbase Will Now Allow Users to Earn Interest on USDC Deposits

Coinbase unveiled its new product via a blog post on Wednesday afternoon. According to the announcement of the firm, eligible Coinbase customers in the US will now earn interest for every USD Coin (USDC) that they deposit on the trading platform. USD Coin (USDC) is a stablecoin that is backed 1:1 by USD reserves.

Ethereum (ETH) Price Today – ETH / USD

#NamePrice24H %
2
ethereum
Ethereum(ETH)
$179.12
-3.79%

This product is in line with the goal of Coinbase to make digital currency more accessible to everyone, as USD Coin rewards would allow more customers to take advantage of stablecoin rewards, easily and simply. The firm is offering an APY of 1.25%. This means that after a period of one year, a deposit of $100 could yield a profit of $1.25. This is not much, but it is better than nothing. The firm said that it would pay out interests on a monthly basis. The latest product of Coinbase came not long after the unveiling of Binance Lending. Binance Lending gives a limited number of crypto holders the chance to earn interest on Bitcoin (BTC), Tether (USDT), Ethereum (ETH), and other digital currencies.

The Interest Rate of Ethereum DeFi Is Four Times That of Coinbase

Ethereum decentralized DeFi apps seem to offer much higher rates than the 1.25 percent that Coinbase is offering. According to data from LoanScan, three Ethereum-based borrowing, lending, and trading platforms – Compound (Dharma), Neo, and Fulcrum – offers some five percent on USDC deposits. This offer is four times higher than the APY Coinbase is presently offering eligible customers.

The rates of some traditional CeFi is even better than what Coinbase is offering. For example, Goldman Sachs’ Marcus is offering 2 percent APY on USD. Celcius Network is even offering 9.25% on certain stablecoin loans. Nevertheless, different platforms have their own risks. It is easy to exploit some platforms, while others are more secure.

Pundits are saying that the interest product of Coinbase only adds to the network effects on digital currency, specifically Ethereum. A digital currency investor – Spencer Noon – said that the return offered on USDC deposits has huge onboarding potential for Open Finance, directing millions down to the rabbit hole of Ethereum.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.