Coinbase has announced that they have directly integrated with decentralized finance (DeFi) platforms like Compound and dYdX to create a streamlined crypto savings experience.
Coinbase users will be able to move funds directly from their Coinbase balance into DeFi platforms. Further, users will be able to see the different interest rate options on the various platforms available so that they can choose the best deal.
Additionally, Coinbase users will be able to see the specifications of the DeFi platforms such as assets under custody, minimum collateral, and how the loans are utilized by the DeFi platform. This data in combination with the interest rate data will help Coinbase users make decisions which balance security and profits.
The coolest feature of this integration is that Coinbase users will be able to see their crypto balances grow in real time, and they can withdraw the funds back to their Coinbase wallet at any time without any penalties.
Essentially, Coinbase integrating with DeFi apps has created a perfectly streamlined crypto savings account.
This new service could end up drawing alot of users, since banks offer practically no interest for savings accounts anymore, with the best banks offering perhaps 1%. On Coinbase users can earn up to 6% interest annually.
Overall, the fact that crypto savings accounts can earn significant amounts of interest, while simultaneously bank savings accounts earn basically nothing, could drive crypto adoption long term.