The largest American crypto exchange introduced a new tool for owners of the cbETH derivative. Traders and investors can now borrow funds secured by their staking positions without initiating the lengthy validator withdrawal process or selling their assets. The product infrastructure is built entirely on the exchange’s own L2 blockchain, Base.
Loan Conditions
The maximum loan size available to a user is $1 M. The key advantage allows users to maintain ether staking yield while simultaneously accessing free liquidity.
The service is already live for U.S. residents, excluding New York State due to strict restrictions from the local regulator BitLicense. Interest rates on loans are not fixed; they vary based on market conditions and liquidity demand at any specific moment.
Implementation
Coinbase integrates with the decentralized lending protocol Morpho. This optimizes capital efficiency through peer-to-peer matching of lenders and borrowers within the Base network. The exchange acts as an interface connecting retail clients with DeFi liquidity.
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