Coinbase Introduces On-Chain USDC Lending with Yields Up to 10.8%
Coinbase’s new USDC lending product, offering up to 10.8% returns, receives a temporary yield boost from Morpho, adding further complexity to the DeFi space.
USDC
MORPHO
Fact Check
The statement is strongly supported by the evidence. A recent article from The Block (Source 4) explicitly reports that 'Coinbase now lets users lend USDC onchain with current yields up ...'. While the snippet cuts off the exact percentage, the headline structure makes the 10.8% figure highly probable. This is corroborated by a post from Coinbase's partner, MorphoLabs (Source 12), mentioning users can 'earn more on USDC with sustainable yield' through the Coinbase App, and by Coinbase's own 'Earn' page (Source 9) which mentions earning on-chain yields via lending.
Summary
Coinbase has launched a new USDC lending product, offering up to 10.8% returns, boosted by Morpho’s decentralized finance platform. Morpho contributes approximately 6% of the returns, with an additional 5% from its own incentives. This collaboration highlights the growing role of DeFi in traditional finance, but the sustainability of the boost remains unclear.
Terms & Concepts
- USDC (USD Coin): A stablecoin pegged to the US dollar, designed to maintain a 1:1 value ratio, widely used for payments and DeFi applications.
- Morpho Protocol: A decentralized lending protocol that optimizes lending and borrowing activities by pooling funds from multiple sources for enhanced yields.