Coinbase Wallet has integrated its platform with decentralized finance (DeFi) apps in order to allow customers to issue loans in digital assets and keep track of the interest growth directly from their digital wallets.
Coinbase Wallet users have been allocating millions of dollars into DeFi platforms via the WalletLink feature and a built-in (decentralized application) dApp browser.
Coinbase says it wants to further improve the user experience. Before the integration, users had not been able to compare the different rates offered by providers. They were also not able to check their total balance.
The newly developed feature offers a more convenient and easier way for Coinbase wallet users to work with different DeFi platforms, such as Compound and dYdX. Users may select a coin, choose a smart contract provider, and then invest crypto assets into the chosen DeFi platform. They will be able to check their total balance and interest accumulated without having to exit the wallet.
The new feature will be rolled out this week for iOS users. Android users will be able to access it within the next few weeks.
Coinbase’s management has cautioned that DeFi platforms are still relatively new and pose significant risks to investors.
The San Francisco-based crypto exchange warned:“Before you get started, please be aware that DeFi lending apps are relatively nascent and come with risks. DeFi apps are programs running on the blockchain, and like any computer code they can potentially have bugs that cause you to lose money.”
It clarified:“Returns are not guaranteed and your deposits are not insured.”