TLDR:
Coinbase and Morpho have a base blockchain to provide up to $ 100,000 USDC loans with Bitcoin support, and Bitcoin is automatically converted to CBBTC as collateral, and the service is currently used by US customers. You can (except NY). The interest rate in the EU market varies, and is determined by Morpho’s market -led mechanism. The fixed repayment schedule loan is positioned as a highly tax efficiency alternative to selling bitcoin, so users can maintain the cryptocation stock while accessing fluidity. , Critics raise concerns about the risk of intensive, automatic liquefaction during prices, and various interest rates.
Coinbase, the main cryptocurrency exchange, has launched a new loan service that allows users to rent USD coins (USDC) as collateral.
The program, announced on January 16, 2025, was born from a partnership with Morpho, a distributed money market protocol, and is operated by Coinbase’s Layer-2 blockchain platform Base.
With this new service, users can rent up to $ 100,000 in USDC while retaining the ownership of bitcoin. When a user pledges as collateral, it is automatically converted to a coin base slap bitcoin (CBBTC) on a one -on -one ratio before being transferred to Morpho’s smart contract.
Currently, this service can be used by US residents, except for New York residents. Coinbase has shown an international expansion plan, and has been marked as the next target market because the USDC consistently consistently consistently with MICA regulations.
@Coinbase encryption support loan equipped with Morpho.
Currently, millions of users can borrow BTC on Coinbase. pic.twitter.com/trafouzfzt
-Morphorab
(@morpholabs) January 16, 2025
(@morpholabs) January 16, 2025The loan process works without a fixed repayment schedule and provides flexibility to the borrower. Interest rates are not fixed, but instead fluctuates based on Morpho’s market -led mechanism. This automatically adjusts the interest rate according to the market situation.
One of the important features of this service is a potential tax advantage. Users may be able to postpone capital gain and loss by borrowing instead of selling bitcoin, and are attractive for those who are seeking fluidity without triggering tax events. It will be an option.
The borrowed USDC can be converted to a US dollar without a fee, and opens various uses, such as a major purchase such as a drop in cars and mortgages. Users can also get more than 4 % of USDC rewards and send them globally without additional costs.
Morpho’s involvement in partnerships brings substantial reliability to the program. This protocol has grown to the 12th largest distributed application, with the total value of over $ 3.2 billion in 2024, and indicates an increase in activities by 444 %.
The introduction of this service will continue in September of CBBTC Coinbase. According to Dune Analytics data created by User EEKEYGUY, CBBTC has been equivalent to $ 2.1 billion since its establishment.
Mixed reception
The community response to new loan services is mixed.
Some users highly appreciate additional financial flexibility, but other users are concerned about potential risks. Critics pointed out the dangers of a market sluggish in the market, where the borrower could lose collateral if the value of bitcoin was less than a specific value.
Several users have been alert about the aspects of services. With the use of bitcoin (CBBTC), which is involved as a coin -based intermediary and wrapped, some Defi pureists have questioned whether the services match the principle of decentralization. Ta.
The floating interest rate structure is also attracting attention. Fees are frequently recalculated and can create uncertainty in the borrower trying to plan fiscal. Some community members argue that this variable can reduce the service appeal of long -term borrowing.
The technical aspects of the implementation have been scrutinized. The conversion from bitcoin to CBBTC and the development of Ethereum -based Defi protocol have raised questions about the complexity and potential risk of the loan structure.
For surveillance, the user needs to track the ratio of loans and value to avoid liquidation events. This requirement will be responsible for additional responsibilities to actively manage your position, especially during the volatility of the market.