Coinbase Wallet had made an announcement. This announcement was in regards to the new integration of Decentralized Finance (DeFi) apps to its offering. With this, they plan to enable users to earn interest through the investment of their various holdings.
Easing User Experiences
One of the world’s most significant exchanges’ wallet platform had already allowed for its various users to access DeFi through multiple platforms. Primarily, they did this through the use of decentralized Application (DApp) browsers or otherwise using WalletLink on the desktop.
Sid Coelho-Prabhu, the lead at Coinbase Wallet, was quick to point out the inefficiencies. He explained that it’s no easy task to run comparisons on various rates, or otherwise view different balances when it’s spread across these multiple platforms. Coelho-Prabhu was proud to note that the announcement today signifies a new, easier era for its users, as these DeFi apps will now be integrated into the Coinbase Wallet itself.
Earning Interest Through Crypto
With this, wallet users are now capable of tracking interest rates of different cryptocurrencies on different platforms, as well as keep track of their funds. They will be able to do all of this through the wallet dashboard.
Coelho-Prabhu went further, saying that the new lending experience allows for users to be a few simple taps away from putting their various cryptocurrencies to work. Coelho-Prabhu explained that a user need only to pick the coin they want to lend, pick the smart contract they want to lend it through, and enter the amount of crypto that they wish to lend. Through the process of smart contracts, Coelho-Prabhu stated that your coins could earn you interest.
Times Are Changing
The feature was rolled out through the iOS platform, and users of Android had received the utmost assurances that they will receive the applicable update within the coming weeks.
DeFi platforms themselves will allow users to take out loans, with cryptocurrencies used as the collateral. Coinbase gave a quick explanation of the matter. Simply put, if a borrower wants to borrow say, $50, they would then need to lock up a minimum of $100 in the form of crypto as a form of collateral. A bit high, but crypto’s volatility mandates it
DeFi Loans have seen an incredible surge in demand, with although the platforms themselves are typically seen as disrupters to the global banking system, they still have flaws. MakerDAO had almost collapsed due to the market halving in value amid the coronavirus.