The service is powered by Morpho, a decentralized lending protocol, with allocations managed through onchain vaults curated by Steakhouse Financial on Base, the Coinbase-incubated Ethereum Layer 2 network. When users deposit USDC, Coinbase creates a smart contract wallet that routes funds across different lending pools to optimize returns. Users start earning yield immediately and can withdraw at any time, subject to liquidity.
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Coinbase now lets users lend USDC onchain with current yields up to 10.8%
"USDC Rewards does not involve lending customer assets — it’s a customer loyalty program offered at Coinbase’s discretion, and with payouts coming directly from Coinbase’s marketing budget," a Coinbase spokesperson told The Block.
