Coinbase adds support for the Compound decentralized finance project. Users can now block DAI stablecoins to generate income.
In the DeFi industry, blocking tokens to provide liquidity to traders has become a very popular way to generate passive income. The stakes are often very high, but there are also risks of losing assets in the event of a hack or developer error. Coinbase Exchange
announced about the possibility of blocking DAI stablecoins.
Tokens will be delivered to the pools of the DeFI Compound protocol, and users will make a profit without having to trade. The service’s profitability varies depending on the rates in the Compound protocol. For example, in October, rates varied from 2.83% to 5.39% per annum.
As an advantage of using the Coinbase service, senior product manager of the exchange Rhea Kaw noted that users can use their money for trading or payment at any time by taking it from the liquidity pool. Importantly enough, Coinbase takes care of the fees for transferring tokens to and from the Compound protocol.
The new service can be used by users from over 70 countries, including the UK, Germany and Spain. But the clients of the exchange from the United States will not get access to it – local regulators are extremely negative about such products based on cryptocurrencies.
“DeFi has tremendous potential to increase economic freedom and we are delighted to provide a reliable and affordable use case. Today is just the beginning – we will continue to explore ways to enable our clients to access new DeFi assets and protocols, ”the article emphasizes.
As a reminder, Coinbase remains one of the world’s largest cryptocurrency exchanges. It accounts for 19.7% of visits to exchange sites
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