Coinbase has added a high-yield USDC vault to its in-app DeFi lending offering.
Summary
- Coinbase has added a high-yield USDC vault linked to the Athena legacy.
- Morpho powers the markets while Steakhouse manages the vault shares.
- Primary and high-yield vaults use different securities structures.
The product works with the Morpho infrastructure and uses the vault shares selected by Steakhouse Financial. The launch introduces a secondary lending option that provides exposure to a wide range of collateral assets.
Athena finds a new route within Coinbase
Coinbase users can now borrow USDC through the High Yield vault without leaving the exchange system. The product works with Morpho-based lending markets and supports a powerful collateral framework. Unlike the existing Prime USDC vault, the new option includes Athena-related assets among the collateral received. Coinbase continues to provide access through its existing consumer interface. Users choose the vault while underlying transactions move through the onchain infrastructure.
Athena finds another distribution channel through the Coinbase ecosystem. USde acts as one of the assets attached to the collateral structure. According to the project design, USde uses crypto-backed and hedging strategies. The asset is different from stablecoins backed by the treasury like USDC and USDT. Coinbase users now have access to a lending product that includes exposure to the markets backed by those assets.
Steakhouse Financial manages the vault shares while Morpho provides the lending infrastructure. Deposits enter the lending market where borrowers pay interest to lenders. The program maintains the lending function within the Coinbase application. At the same time, lending operations are conducted using a decentralized infrastructure. The arrangement expands Coinbase’s existing framework for DeFi lending.
Primary and high-yield vaults use different securities structures
Prime USDC vault focuses on securities such as cbBTC, cbETH, and wstETH. Coinbase places a vault around assets that are considered high quality within the lending framework. Meanwhile, the High Yield vault accepts a wide range of securities. Additional collateral options can increase the demand for borrowing in all supported markets. As a result, lenders may achieve different market-driven returns.
Steakhouse Financial differentiates both products according to collateral exposure. Advanced vaults maintain a small collateral profile across all supported markets. High-yield vaults allow for assets with unique insolvency characteristics. Borrowers using those assets can pay different rates for USDC liquidity. Therefore, each vault operates under a different risk structure.
Coinbase describes the product as part of an on-chain lending offering. Users choose between collateral profiles through a simplified interface. Lending mechanics continue to work with Morpho smart contracts. Depositors earn interest generated from the borrower’s activity. Returns depend on conditions within the underlying lending markets.
Coinbase is delving into on-chain financial services
The launch adds another onchain financial product to the Coinbase consumer platform. Users access lending features without transferring money to external applications. Coinbase combines access to the exchange with a decentralized infrastructure through the use of a vault system. The company continues to expand products connected to onchain services. Recent launches have included payment and automation tools.
As reported by crypto.news, Coinbase recently launched Coinbase for Agents to support transactions with AI-powered assistants. The company is also expanding the infrastructure connected to the base network. According to Coinbase, Base related systems have processed more than 100 million AI agent transactions. The launch of the lending vault comes as Coinbase develops additional on-chain products. These services are always accessible through the main Coinbase app.
For Athena, the new vault provides another distribution channel for USDE-related work. For Coinbase, the launch expands its existing DeFi lending program. Users can now choose between Prime and High Yield vaults based on available collateral properties. Both products run on Morpho’s infrastructure and shares owned by Steakhouse. The High Yield vault is now available through the Coinbase program.
