The wallet product from the exchange platform, Coinbase has expanded its use-cases and will now allow you to earn simply by storing your assets on it. The way this will work is by allowing you to lend out your crypto through the wallet. However, they are not reinventing the wheel in respect to this service which was already capable to do via other services, such as Compound and dYdX. Indeed, many people were already doing this on a grand scale and using Coinbase Wallet as the vessel. Coinbase has noted that that millions of dollars’ worth of de-fi assets were being deposited like this from their wallets. In doing so, these users were earning interest of up to 6% by taking advantage of their wallet’s decentralized application (dapp) browser or via WalletLink on desktop. The purpose of Coinbase Wallet’s new feature is not to replace these but to make comparing these different interest rates easier. As per Coinbase, “We’re making it even easier to use these DeFi apps by integrating them into the Wallet experience. You can now compare different rates from providers, easily deposit your crypto without opening a web browser, and view your balances on a simple, unified dashboard.” To get started with this procedure is simple enough with the process being comprised of 3 steps. To kicks things off you just need to choose a coin to lend, an amount and then set-up a smart contract that will formalise the process of the lend. Once this is complete the crypto will be deployed to this smart contract. While it is in there you can then monitor your earnings from the interest as it is being generated directly via the Coinbase Wallet app. Once you are content with the earning, you complete the process by cashing out and taking your interest with you. If you are keen to start earning these benefits than you can do so immediately via either the iOS or Android app. Although if you are new to the concept of De-Fi lending then, of course, you should get your head around how they work first. In regard to this, De-Fi lending apps are based on smart contracts. These function much in the same way as traditional loan and borrowing do, i.e. the borrower will pay interest to the lender for the duration for the ability to have these funds. However, the smart contract is known as such becuase it can adjust the interest rate attached to these borrowed sums dynamically based on the supply and demand for loans. Furthermore, they also combat any borrowers who default on their loans. As Coinbase explains, “If the borrower does not repay or if the collateral value falls below a certain level, the contract attempts to sell the collateral to recover the debt and repay lenders.” These types of smart contracts can be set-up with Ethereum and any other Ethereum-based tokens – the reason for these is because smart contracts are themselves, Ethereum apps. Loaning possibilities include USDC, DAI, BAT, REP, WBTC and ZRX. In terms of the rates, these are constantly fluctuating but generally range from 0.03% to 4.17% APR – but as per Coinbase, their wallet will help you find the best. While the concept is one that is very promising, you still need to be careful as risks are run when you set-up these contracts. As they are built on blockchain, bugs can happen and these can lead to you losing money. Furthermore, returns are not guaranteed and your deposits are not insured. As such, you do run this relatively low risk but it still needs to be considered. If you are still keen to get involved, try them out now with the Coinbase Wallet. They have two main advantages. First, they are a tried and trusted name, and second, they promise you the ability to find the best rate. Go to Coinbase now to start getting involved.