U.S.-based crypto exchange Coinbase has launched a rewards program for customers holding the dai stablecoin from popular DeFi project Maker.
- Coinbase said Wednesday that users holding more than 1 dai will see returns at 2% annual percentage yield (APY).
- The program applies to customers residing in the U.S., U.K., The Netherlands, Spain, France and Australia.
- Rewards are to be distributed within the first five business days of receiving dai in a Coinbase account and will be handed out daily after the first payout.
- Coinbase has a similar program for U.S. customers that rewards users based on the amount of USDC held in their exchange wallets. Staking rewards are also offered on tezos (XTZ) holdings.
- The exchange already rewards users for interacting with educational content with dai as part of the Coinbase Earn project.
- Dai-issuer MakerDAO is the biggest platform in decentralized finance (DeFi). Earlier this week, the total value of cryptocurrency locked into the platform crossed $1 billion – a first for any DeFi project.
- Maker itself offers interest on holdings of dai, however Coinbase said the rewards scheme is a promotion funded by itself.
See also: IRS Enlists Coinbase in Latest Crypto Tracing Deal
Correction (July 29, 21:05 UTC): Coinbase is not planning to offer rewards on cardano (ADA) accounts, as was misreported in an earlier version of this story. There are plans for Coinbase Custody to support the staking of ADA tokens later this year.
Edit (07:52 UTC, July 30): Updated with further information from Coinbase regarding the funding behind the rewards scheme.