Coinbase cryptocurrency exchange has announced a new DeFi service for eligible clients in over seventy countries outside of the US.
The exchange says that the DeFi yield platform would be accessible exclusively to MakerDAO’s DAI stablecoin. Eligible users would earn yields from the Coinbase app and its website.
Coinbase would generate the yield on DAI using the Compound Finance protocol. The annual percentage yield would depend on the platform’s rate. The exchange has noted that the APY was between 2.83% and 5.39% in October.
The company has warned investors of potential losses but says the chances are low due to over-collateralization. It adds that it would cover the gas fees.
Coinbase’s initial plan to roll out a DeFi service that would have allowed investors to earn a yield on USDC stablecoins in September was blocked by SEC’s lawsuit threat.
The countries where DeFi yields are available include the UK, Spain, Germany, among other countries.
DAI, the fourth-biggest stablecoin, has a market capitalization of $9 billion and has seen its supply skyrocket by 2,300% since the start of the year.