Crypto exchange Coinbase has announced that its customers from the US, UK and other select countries can now earn rewards for holding the DAI stablecoin in their accounts, according to a press release.
“Today, we’re introducing Dai Rewards, with 2% APY [Annual Percentage Yield] for customers in the US, UK, Netherlands, Spain, France, and Australia,” the platform announced.
Customers from the eligible countries can start receiving the rewards as soon as they deposit at least $1 worth of DAI in their Coinbase accounts from an external wallet.
Initial rewards are slated for distribution within the next five business days. After that, users will receive their yields on a daily basis, the exchange explained.
“[This] means customers can use or withdraw their rewards as soon as they receive them. Customers always maintain control of their funds—their Dai stays in their accounts and can be withdrawn instantly at any time,” said Coinbase.
The DAI stablecoin has a steady value of one US dollar and is the key component of the MakerDAO lending system. MakerDAO is part of the Decentralized Finance (DeFi) industry, Ethereum’s latest “killer app.” DeFi is full of experimental products offering lending and borrowing services that don’t involve a third party.
Last year, Coinbase also launched a similar reward system for users who are holding another stablecoin, USD Coin (USDC), on its platform—but later slashed USDC yields by nearly 90% this June.
The exchange also previously launched DAI on Coinbase Earn, its crypto educational platform that rewards users for watching videos and taking various quizzes. Now, what percentage will DAI holders on Coinbase earn again?