Coinbase Wrapped BTC (cbBTC) Holders Can Now Earn 6% APY on Base via Umoja’s New DeFi Product

Decentralized finance protocol Umoja has launched a new product enabling cbBTC holders to earn a 6% annual yield on Base, leveraging strategies like covered calls and arbitrage.

Umoja Releases Product Allowing cbBTC Holders to Earn 6% APY on Base

Decentralized finance (DeFi) protocol Umoja has introduced a new product enabling holders of Coinbase wrapped BTC (cbBTC) to secure a 6% annual percentage yield (APY) on the layer-2 network Base. Umoja achieves this yield through various centralized and decentralized exchange strategies, such as covered calls and arbitrage. It’s important to note that cbBTC is an ERC-20 token backed 1:1 by Bitcoin held at Coinbase, not Bitcoin itself. The Umoja protocol supports Yield Vault Tokens (YVTs) collateralized by cryptocurrencies, with yBTC being minted when users deposit cbBTC. This development opens up new avenues for earning yields on BTC using DeFi strategies.

Coinbase Launches KYC-Verified Pools for DeFi in Select Regions

Coinbase has announced the launch of Verified Pools, a set of liquidity pools available to customers verified by the firm. This feature is accessible to users in the US, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands. Verified Pools cater to both institutional and retail traders, offering KYC-verified liquidity pools to uphold the company’s stance on the openness and efficiency of on-chain markets. The exchange claims that this service reduces counterparty risk for decentralized finance (DeFi) retail and institutional participants, providing a safer way for them to engage with DeFi.