Victor Ugochukwu · Dec 14, 2020 . 5min read
Coinbase offers DAI Rewards scheme for customers in US, UK, Netherlands, Spain, France, and Australia
Coinbase has launched its DAI-based rewards programme to follow up with its stablecoin and Coinbase rewards programme from last year.
By Shilika · Jul 30, 2020 . 5min read
Coinbase announced that it is offering a rewards program for its crypto-owning customers in a recent blog post. The scheme is called DAI Rewards. Coinbase’s DAI rewards are for customers in the US, UK, Netherlands, Spain, France, and Australia. They can get 2% annual percentage yield (APY) with their holdings.
This is the latest rewards scheme that Coinbase is offering. Last year, the company began offering rewards to stablecoin holders for every USD Coin(USDC) held on Coinbase. Moreover, they launched DAI on Coinbase Earn wherein users can take quizzes and watch videos to earn cryptocurrencies.
Stablecoins – A less volatile storehouse in the crypto space.
Stablecoins market capitalization has grown to $12 billion this year. COVID-19 has created enormous amounts of economic uncertainty which reflects the volatility of markets. People are looking for less volatile alternatives to store their wealth. This is where stablecoins come in. They maintain their value at around $1.
Traditionally, people would look to savings accounts and government yields to hoard their wealth. Yields on these options, however, are at record lows. This provides further incentive for organizations like Coinbase to offer the kind of rewards program that they have launched.
Customers must purchase $1 worth of DAI to be eligible for rewards. As soon as they do this, they distribute rewards within five days. Moving forward, they distribute rewards on a daily basis. Coinbase’s customers will be able to use or withdraw their rewards as soon as they receive them.
MakerDAO issues DAI. They are the biggest platform in decentralized finance (DeFi). For the first time in respect to any DeFi project, cryptocurrency held on MakerDAO crossed $1 billion. MakerDAO also offers interest on holdings of DAI. It is not inconceivable that Coinbase is merely passing on the earnings from one platform to another.
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