The Texas-incorporated crypto giant is extending its “DeFi Earn” product to Brazil and Canada, letting users in those countries earn rewards as high as 7.4 per cent annually by lending USDC—a crypto token pegged to the value of the U.S. dollar—to borrowers on the crypto lending protocol Morpho. (The Logic)

Talking point: Whether Canadian crypto platforms should be allowed to offer yield on stablecoins is contentious. Banks have warned it could incentivize people to pull deposits out of the banking system in search of better rates. The Ontario Securities Commission has granted Coinbase and Crypto.com permission to offer yield on stablecoins under certain conditions. Coinbase’s new offering is riskier than its previous stablecoin rewards program, which it has said was funded out of its marketing budget. DeFi lending protocols like Morpho, which operate automatically through blockchain technology, mitigate some of the risks that contributed to the market collapse and contagion of 2022 by requiring borrowers to pledge more than the total value of their loans. However, they’re still vulnerable to hacks and market manipulation.

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