American cryptocurrency exchange Coinbase has announced its wallet Coinbase Wallet now allows users to lend out crypto and earn interest on decentralized finance (DeFi) applications.
According to an official blog announcement, With the new lending experience, users can pick a coin to lend, pick a smart contract, and enter the amount a user wishes to lend.
The lending DeFi service is based on the Ethereum blockchain and is using smart contracts to run operations.
After a user deposits cryptocurrencies into the DeFi contract, the contract loans the cryptos out to borrowers who pay interest. The contract dynamically manages interest rates based on the supply and demand for loans, the announcement states.
At press time, users can lend out Ethereum and other ERC-20 tokens such as USDC, DAI, BAT, REP, WBTC and ZRX.
Interest rates currently vary from 0.03% to 4.17% APR depending on the coin and contract you choose. Interest rates are floating and can change frequently, the announcement highlights.
Previously iHodl reported that Coinbase Card integrated support for Google Pay.
Thus, Coinbase has become the very first company to enable mobile payments powered by crypto balances.
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