Coinbase's new lending product offers returns of up to 10.8%, temporarily boosted by the DeFi lender Morpho. According to Max Branzburg, the head of Consumer and Business Products at Coinbase, approximately 6% of the returns come from Morpho’s platform, with an additional 5% provided by Morpho as a promotional incentive. Although the elevated rates are currently appealing, a Coinbase spokesperson confirmed that these subsidized returns will not last indefinitely. This arrangement raises questions about the sustainability and transparency of yield rates in the crypto lending market, especially following the high returns offered before the collapse of other lending platforms in 2022. Coinbase previously limited interest to 4.5% APY for USDC held in accounts, thus introducing this product to attract more users. Furthermore, it's mentioned that Morpho's infrastructure enables users to create tailored markets for overcollateralized loans on their platform. As the product differs from older high-yield offerings, it signifies the ongoing evolution in crypto lending strategies amid regulatory concerns and market volatility.

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