At Coinbase, we want to offer more ways for customers to earn rewards with their crypto. Last year, for example, we began offering stablecoin rewards to US customers for every USD Coin (USDC) held on Coinbase. We also launched Dai on Coinbase Earn, where customers can earn crypto by watching videos and taking quizzes about different cryptocurrencies.
Today, we’re introducing Dai Rewards, with 2% APY* for customers in the US, UK, Netherlands, Spain, France, and Australia. With yields on savings accounts and government bonds at record lows, earning rewards on stablecoins like Dai and USDC stands out as an alternative way to passively generate income using crypto held on Coinbase.
Stablecoins that aim to maintain a stable value of $1, like USDC and Dai, can be useful because they are not subject to the same volatility as many other cryptocurrencies. This is one reason stablecoins have grown to a market cap of more than $12 billion, as people use them to hold funds without volatility, transfer funds quickly and cheaply, and gain exposure to the US dollar.
Eligible customers will begin earning rewards automatically once they have $1 of Dai in their Coinbase accounts. Initial rewards will be distributed within five business days, then every day following, which 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 Customers always maintain control of their funds — their Dai stays in their accounts and can be withdrawn instantly at any time.