Coinbase Adds ETH Collateral Option to On-Chain Lending Service
Coinbase expanded its DeFi lending platform to include Ethereum collateral, enabling eligible U.S. users to borrow up to $1 million USDC with defined LTV limits on Base via Morpho.
ETH
USDC
WETH
Summary
Coinbase updated its on-chain lending service to allow Ethereum (ETH) as collateral, letting eligible U.S. users borrow up to $1 million in USD Coin (USDC) without selling crypto holdings. The loans are facilitated through the Morpho protocol on Base, Coinbase’s Ethereum layer-2 network, with a maximum loan-to-value (LTV) ratio of 75% and liquidation triggered at 86%. Initially, ETH collateral will be wrapped Ethereum (WETH), with plans to later support Coinbase’s staked Ethereum (cbETH).
Terms & Concepts
- On-chain lending: A blockchain-based loan process where funds are borrowed and collateral is managed directly on the blockchain.
- USDC: A U.S. dollar-pegged stablecoin used for payments and digital transactions.
- Morpho protocol: A decentralized lending platform enabling peer-to-peer crypto loans with optimization for efficiency and yield.