By Sid Coelho-Prabhu, Coinbase Wallet Lead
Coinbase Wallet now enables users to lend their crypto and earn interest directly through decentralized finance (DeFi) apps. This integration streamlines access to platforms like Compound and dYdX, where users can earn up to 6% APR on deposits.
Key Features of the New Lending Experience
- Rate Comparison: View and compare interest rates across multiple DeFi providers.
- Simplified Deposits: Deposit crypto without needing a separate dapp browser.
- Unified Dashboard: Track balances and earnings in one place.
👉 Discover how DeFi lending works
How to Earn Interest in 3 Steps
- Select a Coin: Choose from Ethereum or Ethereum-based tokens like USDC or DAI.
- Pick a Smart Contract: Opt for a DeFi app (e.g., Compound) based on rates and terms.
- Deposit Funds: Enter the amount to lend—your crypto starts earning interest immediately.
Interest accrues in real time and can be withdrawn anytime by returning the funds to your Wallet.
How DeFi Loans Operate
DeFi apps use Ethereum smart contracts to automate lending:
- Borrowers provide collateral (e.g., $100 locked for a $50 loan).
- Interest rates adjust dynamically based on market demand.
- Contracts liquidate collateral if repayment fails or values drop.
Supported Assets: ETH, USDC, DAI, BAT, WBTC, and more.
Current Rates: 0.03%–4.17% APR (floating).
Risks and Considerations
- No Insurance: Deposits aren’t FDIC-insured; returns vary.
- Code Vulnerabilities: Smart contracts may have bugs.
- Due Diligence: Research contracts’ terms (e.g., collateral ratios) before depositing.
FAQs
Q: Is Coinbase Wallet available globally?
A: Yes, with iOS support rolling out now and Android soon.
Q: Can I withdraw my funds anytime?
A: Yes—redeem your crypto from the smart contract back to your Wallet.
Q: Are DeFi loans safe?
A: While collateral-backed, risks include smart contract exploits and market volatility.
👉 Learn more about DeFi strategies
About Coinbase Wallet
A user-controlled wallet where you manage private keys (unlike Coinbase.com custodial accounts). Includes a dapp browser for accessing decentralized apps.
Feedback Welcome: Contact [email protected].
Disclaimer: Third-party links are informational only. Coinbase doesn’t endorse external sites.
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