- Coinbase has made another move to improve its Coinbase Wallet's usefulness and efficiency.
- The new move will see the wallet app delve deeper into DeFi project integration, with new features and functionalities enabled.
- The biggest change right now is the addition of lending, which will grant users the ability to lend/borrow money to others.
The largest cryptocurrency exchange in the US, Coinbase, has made a number of steps to improve users’ experience. Its mobile app, Coinbase Wallet, already allows users to fully control their assets. Furthermore, the app also allows access and use of various dApps.
Now, however, Coinbase is ready to add even more functionalities and grant further access to all kinds of DeFi projects. Doing so will bring some of the traditional financial products to the blockchain.
Some examples of this may include the crypto lending/borrowing, investing in derivatives, and more. As a result, the company’s ecosystem will become richer with features and products, and also more user-friendly.
Apart from being useful to the wallet’s users, the deeper DeFi integration will also bridge the gap between blockchain and traditional finances.
Lending will now be available within Coinbase Wallet
When it comes to some of the more popular DeFi projects, lending protocols have been on a significant rise. The concept is rather simple — users who have funds, but are not using them, can lend them to borrowers, who later return it with interest. The interest rates can change, depending on supply and demand. However, the whole concept seems to be working rather well for the emerging crypto industry.
The new Coinbase Wallet update will make working with the lending projects much simpler and more user-friendly. Users will be able to lend and borrow funds through the wallet, pick specific crypto, compare interest rates in different lending protocols, and more. They will also have the ability to view their balances, all at the same place.
Positives and negatives of blockchain loans
Of course, borrowers will also need to provide collateral in the form of crypto assets. One positive of this approach is that loans will not depend on credit history or external financial information. On the downside, however, the collateral will need to be larger than the amount that the user is trying to borrow.
Also, the deposits are still not insured. This can be a problem in case of bugs that may provide some loophole. But, Coinbase will likely keep a close eye on things and work on perfecting the system.