ETH Holders Rejoice! Coinbase Lets You Borrow Millions Without Selling 🤑

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Ah, the whims of fortune! Coinbase, that bastion of digital lucre, has unveiled a novel contrivance for its discerning American clientele: Ethereum-backed loans. Imagine, dear reader, the ability to borrow up to one million USDC without parting with your cherished ETH holdings. A veritable miracle of modern finance, is it not? 🌟

  • Coinbase, in its boundless generosity, offers Ethereum-backed loans to eligible U.S. souls (alas, New Yorkers are left to their own devices). 😢
  • Borrowers may access a princely sum of up to $1 million in USDC, all while their ETH remains safely ensconced in their digital coffers. 🛡️
  • This audacious move cements Coinbase’s foray into the realm of DeFi, tapping into the burgeoning crypto-credit bazaar with a flourish. 🎩

The service, one of the exchange’s most ambitious decentralized finance ventures to date, arrives on the heels of Coinbase’s recent largesse: a $5 million Bitcoin-backed loan limit. Ah, the extravagance of it all! 💸

This financial ballet is choreographed through Morpho, a lending protocol on Base, Coinbase’s Layer 2 network. Coinbase, ever the gracious host, provides the entrée, while Morpho’s smart contracts execute the loans with mechanical precision. A marriage of centralization and decentralization, if you will. 🤝

Available in most U.S. states-New York, ever the spoilsport, excluded due to regulatory whims-the service allows users to deposit ETH as collateral and receive USDC without the specter of taxable events. A clever dodge, indeed! 🕵️♂️

Yet, beware! Borrowers must maintain a loan-to-value ratio below 86%, lest their positions face the grim reaper of automatic liquidation. Such is the price of volatility in this wild crypto frontier. ⚡

Coinbase, ever the visionary, promises to expand this offering to include cbETH, its staked-ETH derivative. The plot thickens! 📈

Onchain lending across the Base ecosystem has surged past $1.25 billion, fueled by the frenzied activity of institutional and retail markets alike. Morpho, too, has seen a deluge of inflows as traders and long-term holders embrace collateralized borrowing to maintain their crypto exposure. A financial pas de deux, if ever there was one. 💃

And so, Coinbase positions itself at the vanguard of the crypto-native credit market, its decentralized finance integration growing ever more robust. What a time to be alive, is it not? 🚀

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2025-11-21 06:09