Cryptocurrency exchange Coinbase would now like to offer German customers a DeFi cashback program. That is behind.
A December 10 press release, received by BTC-ECHO, shows that Coinbase is including a DeFi offering in its product portfolio with immediate effect. In this way, the crypto exchange enables customers from Germany to participate in the DeFi market.
The crypto exchange, founded in 2012, has made headlines over and over again in recent months. After the company’s IPO boosted quarterly results in April this year, Coinbase missed its set targets for third-quarter earnings. However, the crypto exchange was able to increase its profits by a staggering 500 percent compared to the previous year.
In June 2021, the German subsidiary of the company managed to acquire one of the most requested crypto custody licenses in Germany, of which there are currently only three in this country. Coinbase is currently taking steps towards the metaverse hype as well. The publicly traded company recently added German sporting goods manufacturer Adidas to its cooperation partners, even if the nature of the partnership remains unclear.
With the announcement that it now wants to introduce a DeFi cashback program for German customers, Coinbase has once again become the center of public attention.
Returns DeFi without network fees
Meanwhile, DeFi’s takeback program doesn’t need more than what existing customers already have. According to the press release, you can participate in the new service directly from your own Coinbase account, and with no network fees.
First, the Dai stablecoin, which is pegged to the US dollar, forms the basis of DeFi’s payback program. Participating Coinbase clients can use the platform to access this stablecoin with a DeFi protocol called Compound financing I deposit to receive returns. Compound Finance can already put other big names on the cooperation list. For example, offers Binance a DeFi stakeout service over the protocol.
The interest rates of the compound financial cryptocurrencies form the basis of the respective achievable returns. According to the press release, these would automatically update to reflect market changes. According to the announcement, the effective annual crypto interest rate in October was between 2.83 percent and 5.39 percent.
Still, the feature isn’t completely risk-free. Coinbase stated in the press release that the protocols used would be “regularly monitored”; however, Coinbase “cannot guarantee against possible losses.” As always, the following applies: Invest only what you are willing to lose.