Ethena Launches USDe High Yield Vault on Coinbase

Ethena’s first product with Coinbase is now live. The Steakhouse High Yield Vault has launched inside the Coinbase app. It uses Ethena’s $USDe stablecoin through the Morpho lending protocol. The vault gives Coinbase users access to a higher yield savings option backed by a broader mix of assets.

Two Lending Options for Users

Coinbase said users can now choose between two lending products. Prime is backed by blue chip assets like Bitcoin and Ethereum. The High Yield vault offers higher potential returns through a wider collateral base. This includes assets powered by Ethena. The new product is available to Coinbase users in the US and abroad.

First Product from the Collaboration

The launch marks the first live product from the Ethena and Coinbase partnership. Ethena announced the vault on social media. They said it brings a “best in class” savings rate directly to Coinbase’s large user base. The rollout expands Coinbase’s push to bring more onchain yield products into its main app. It also gives Ethena access to one of the largest retail user bases in crypto.The vault uses $USDe to power returns. Morpho handles the lending infrastructure. This combination aims to offer a competitive yield while managing risk through a diversified asset pool. Ethena did not disclose specific yield figures in the announcement. However, they framed the vault as a high-yield alternative to traditional savings accounts.

Broader Strategy at Play

Coinbase has been expanding its onchain offerings. The integration with Ethena is part of a broader strategy to bring decentralized finance tools to mainstream users. For Ethena, this partnership provides a significant distribution channel. The company’s $USDe stablecoin has gained traction in DeFi circles. This move could help it reach a wider audience.Some users may wonder about the risks. The vault’s higher yield comes from a broader collateral base. This could introduce additional volatility compared to more conservative options. Coinbase’s Prime product offers a simpler, lower-risk alternative. The choice, perhaps, depends on each user’s tolerance for risk.Overall, this launch represents a step forward for both companies. It brings a novel yield product to the Coinbase app. And it validates Ethena’s approach to stablecoin-powered lending. Time will tell if users embrace it or stick with more familiar options.

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