Coinbase is currently expanded The company’s lending services include some of the most popular altcoins on the market.
This new feature allows U.S. customers to borrow against their holdings without triggering a taxable event or losing market position.
Supported coins include XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC). Users can borrow up to $100,000 $USDCthe second largest cryptocurrency.
instant liquidity
This new feature is designed for speed and efficiency. Users can get “instant” liquidity with the help of coins.
This cryptocurrency-backed facility allows investors to ( $USDC Stablecoins will be available for immediate use while maintaining your long-term investment strategy. This sets Coinbase apart from traditional lending products that often require lengthy approval processes.
card
It is worth noting that the top US exchange has chosen to rely on decentralized infrastructure to power the aforementioned products.
The exchange confirmed that its lending engine is “powered by Morpho” and “runs on Base,” Coinbase’s proprietary layer 2 network.
This integration is indicative of the growing trend of centralized exchanges (CEX) leveraging decentralized finance (DeFi) protocols to improve user convenience.
The service will be available immediately to customers in the United States, excluding New York.
various risks
coinbase We have also outlined some risks that may be associated with crypto-backed loans.
These loans have variable interest rates, so market conditions can affect the cost of borrowing.
Additionally, exchanges have pointed to the risk of collateral liquidation. Users may be required to add funds if the value of the collateral assets declines significantly. You may also end up selling assets to cover the loan.
