Coinbase, one of the world’s leading cryptocurrency exchange platforms, has revealed a new feature in its platform that will enable it’s international users to earn from depositing DAI tokens.
DAI is a fiat based stablecoin linked to the US dollar that is owned by the exchange. The deposit and earn feature, which pays earners in decentralized finance, is available for the exchange’s intentional users, that are spread over 70 countries, with zero transaction fees. This newly developed service however, is not available for its local users, in the US.
The exchange unveiled this news in a blog update on its official website, earlier today. The announcement included the exchange’s intention to break into the decentralized finance (DEFI) space, expressing how informative and amazing the experience is.
Coinbase Introduces DeFi Marketplace To Its Users
Coinbase is currently the leading US cryptocurrency exchange platform, it aims to introduce, in a user friendly product update, the decentralized finance’s market space to its global customers.
As is common with decentralized system protocols, decentralized finance protocols require costly transaction fees and a certain level of technological know-how. In view of this, Coinbase aims to provide DeFi services to its global clients in a simple and free manner. This endeavor, according to the exchange is in line with its global initiative that ensures a wide range of centralized and decentralized finance services and opportunities, is delivered to its customer base all over the world.
As from December 9, the new DeFi feature will be available to the exchange’s customer base. Users can earn money by depositing the DAI tokens into their Coinbase linked Compound Finance account, where they will be offered an Annual Percentage Yield (APY) ,this will determine their unique ROI. The APY varies haphazardly, it depends on the rates dictated by Compound Finance for the elapsed month.
Compound Finance is a standalone DeFi market space utilized by crypto investors to buy, sell, lend and borrow digitized assets. According to Coinbase, the DAI tokens deposited in Compound Finance will still be accessible to users from their Coinbase portal at all times. The exchange added that it will cater for the transaction fees required to access the DeFi space in place of its users.
Coinbase And Regulation Setbacks
Earlier this year, Coinbase initially announced its intentions of launching a US dollar pegged APY credit program in only the US. The exchange subsequently in various promotions urged its customers to pre-register for the program, which resulted in attracting hundreds of thousands of applicants.
In late September however, the exchange recalled all its plans to launch the APY credit platform. The team revealed that possible prosecutive action by the US Securities and Exchange Commission (SEC) for noncompliance, is imminent if it continues its launching plans.
The lack of clearly defined rules and regulations guiding individual and organizational action in the crypto world, has stumped investors, businesses and governmental regulatory bodies worldwide. This also applies in the US, as regulations and compliance guidelines haven’t been clearly established by the US regulatory bodies, the SEC and the CFTC.