Coinbase Introduces Staked Ethereum Loans, Allowing Users to Borrow Up to $1 Million
Coinbase has introduced a new staked Ethereum loan service for eligible U.S. users, enabling them to borrow up to $1 million in USDC using cbETH—a token representing their staked ETH—as collateral. This allows borrowers to retain staking rewards and maintain exposure to ETH's price movements while accessing liquidity. Loans are overcollateralized, with interest rates based on market conditions and no fixed repayment date. However, borrowers must keep the loan-to-value ratio below 86% to avoid automatic liquidation in case of sharp ETH price drops. The feature, powered by Morpho, offers long-term stakers greater flexibility without needing to unstake or sell their ETH.
TheNewsCrypto01/23 09:43
