Coinbase has launched a new lending feature for eligible U.S. users, excluding New York State, allowing them to borrow up to $1 million in USDC using cbETH as collateral. This initiative enables investors to access liquidity without selling or unstaking their Ethereum. The loans are powered by the Morpho protocol, offering overcollateralized, variable-rate loans with no fixed repayment term. Borrowed USDC can be exchanged for USD on the platform.
The feature aims to enhance the utility of staked Ethereum by providing liquidity while maintaining exposure to ETH price movements and staking rewards. Users must maintain a loan-to-value ratio below 86% to prevent automatic liquidation during market volatility.
Coinbase Introduces $1 Million USDC Loans Using cbETH as Collateral
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