Coinbase will now reward users who hold DAI in their accounts
July 29, 2020, 1:30PM EDT
1 min read
Crypto exchange Coinbase is now offering users a yield who hold MakerDAO’s DAI stablecoin in their accounts.
Announcing the news on Wednesday, Coinbase said DAI holders would receive 2% interest per annum. The rate is subject to change, according to the exchange company.
“We will review the rate regularly over time based on multiple factors, which may include market conditions and customer demand,” a Coinbase spokesperson told The Block.
The DAI rewards are currently available to users from the U.S. (except Hawaii), the U.K., the Netherlands, Spain, France, and Australia. Notably, only Coinbase users are eligible, and not Coinbase Pro users.
"Eligible customers will begin earning rewards automatically once they have $1 of Dai in their Coinbase accounts. Initial rewards will be distributed within five business days, then every day following, which means customers can use or withdraw their rewards as soon as they receive them," Coinbase said in a blog post provided to The Block.
Coinbase has offered rewards for holders of the USDC stablecoin since last October. It began with 1.25% p.a. interest, but last month slashed the rate by 90% to 0.15% p.a.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.