Crypto revenue models are becoming more elaborate – and as the aftermath of a prolonged bear market takes its toll, creative solutions to attract and retain customers are becoming de rigeur.
Coinbase’s U.S. customers received a welcome surprise earlier this month, after the cryptocurrency exchange announced interest on users’ USDC deposits.
Paid in monthly installments at an annual percentage yield (APY) of 1.25%, the initiative is meant to encourage users to leave their coins on the exchange, rather than convert them to fiat. The interest rate is similar to that offered by a conventional bank account.
The concept isn’t new. Interest payments are a cornerstone service in the rapidly expanding DeFi sector. Projects like Compound and Celsius Network have long offered users interest on their holdings, and exchanges like Binance are also opening new lending facilities in a handful of popular digital assets.
Data collected by DeFi Pulse shows that there was more than $550.3M of assets locked up in decentralized lending applications at the time of writing. Read More…