DAI Holders Can Now Earn 2% Interest On Coinbase
- Coinbase’s new rewards program applies to customers residing in the U.S., U.K., the Netherlands, Spain, France and Australia.
- The exchange already offers similar programs for the USD Coin (0.15% APY) and the Tezos tokens (5% APY).
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Popular cryptocurrency exchange Coinbase will now be offering rewards to users in six countries holding the Dai stablecoin, the firm said in a blog post on Wednesday.
According to the announcement, the new Dai Rewards program will allow eligible users to earn 2% annual percentage yield (APY) on their Dai holdings. Dai holders from the U.S., U.K., the Netherlands, Spain, France and Australia, who hold at least $1 worth of Dai in their accounts, will receive payments on a daily basis, though the first reward will be received within five business days.
The exchange said in its blog post:
“With yields on savings accounts and government bonds at record lows, earning rewards on stablecoins like Dai and USDC stands out as an alternative way to passively generate income using crypto held on Coinbase.”
Although a good way to earn passive income on your Dai holdings, this is not the only program Coinbase offers that awards Dai. The exchange has already added the stablecoin to its Earn project, which awards users with cryptocurrencies for interacting with educational content on its website.
The U.S. crypto exchange has been offering similar reward programs for a while now. Back in October 2019, the exchange launched a USD Coin (USDC) program, which offered users a 1.25% APY reward for every USDC they hold, though that reward was later reduced to 0.15%. A month later, the exchange also rolled out staking rewards for Tezos (XTZ) tokens, enabling its users to earn five percent interest rate on their XTZ holdings.
The issuer of Dai, MakerDAO, is one of the largest decentralized finance (DeFi) platforms, which according to data from DeFi Pulse has over $1 billion worth of cryptocurrency locked on its platform. MakerDAO is already offering interest on holding Dai, which prompted Coinbase to clarify that its rewards scheme was funded by itself.
- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
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- Coinbase’s Base blockchain was made available to the public on Wednesday, featuring over 100 dApps and services as part of its ecosystem.
- In order to show its capabilities and promote its mainnet partners, Base has also launched an event called “Onchain Summer” that will allow users to mint exclusive NFTs on the network.
- During an interview with FT, CEO Brian Armstrong said that before the lawsuit a SEC staff member had said that all crypto except BTC was security, and should be delisted.
- When asked how he came to that conclusion, the SEC staff member reportedly said “we’re not going to explain it to you, you need to delist every asset other that Bitcoin”.