Coinbase has announced that it’ll let users earn interest on their cryptocurrency by lending it to a decentralized finance app called Compound (via Bloomberg). The program isn’t currently available to US users, though, after plans for a similar feature got the company into trouble with the Securities and Exchange Commission.
Coinbase says that customers in over 70 countries will be able to lend their Dai, a stablecoin whose value is tied to the US dollar, to borrowers from within its app. The process works using a protocol called Compound, which programmatically pools money from lenders and collects interest on that money from borrowers. Coinbase’s pitch is that it makes the system more user-friendly — lending through Compound usually…
