Coinbase Don Launch ETH-Backed USDC Loans for Base as On-Chain Lending Don Pass $1.27B
Coinbase don launch ETH-backed USDC loans for eligible U.S. users on im Layer 2 network wey dem dey call Base. E dey powered by Morpho protocol, dis new DeFi service dey allow borrowers to use ETH as collateral to get up to $1 million in USDC without selling their holdings. Dis ETH-backed USDC loans get variable rates, and borrowers gats keep their Loan-To-Value (LTV) below 86% so that automatic liquidation no go happen when ETH price dey change. According to Dune Analytics, Base’s on-chain lending system don process over $1.27 billion loans, with about $800 million still outstanding across more than 13,300 active wallets. This move go help increase DeFi adoption for Base and make ETH more useful as collateral, opening door for more stablecoin lending activities. Coinbase plan to add cbETH-backed borrowing join the product and dey use recent DeFi integrations plus regulatory clarity to make their lending services better. This development show Coinbase strategy to push DeFi growth and support stablecoin use on their platforms.
Bullish
Di launch wey dem do for ETH-backed USDC loans for Base fit mean say ETH price go rise. For short time, traders fit buy ETH to use am as collateral, wey go push demand and price go dey go up. The condition say make the LTV no pass 86% go also bring margin call wahala, wey fit make market dey move well well, but e dey help buying momentum if ETH price dey rise. For long term, as more collateral options dey come (including cbETH support wey dey come) plus more lending happening on-chain, e show say DeFi dey grow well and ETH role as key collateral asset go remain strong, supporting steady demand.