Coinbase Wallet has integrated with decentralized finance (DeFi) apps to let users lend out crypto assets and track interest growth directly on their wallet.
According to the company's Wednesday announcement, users of Coinbase Wallet are already placing millions of dollars into DeFi platforms via the wallet’s built-in DApp browser and the WalletLink feature. However, Coinbase is looking to make the user experience more seamless. Previously, users couldn't easily compare rates offered by different providers or view their total balance across these providers.
The new feature provides an easier way for wallet users to interact with DeFi platforms like Compound and dYdX, the announcement said. Users can pick a coin, choose a smart contract provider and invest any amount of crypto into the selected DeFi product. They can then view their total balance and interest earned without leaving the wallet.
The feature will be available for iOS users this week and Android users in coming weeks, according to the announcement.
At the same time, Coinbase warned investors that DeFi products are still new and relatively risky. They should thus proceed with caution.
“Before you get started, please be aware that DeFi lending apps are relatively nascent and come with risks,” said the announcement. “DeFi apps are programs running on the blockchain, and like any computer code they can potentially have bugs that cause you to lose money.”
“Returns are not guaranteed and your deposits are not insured,” it added.