Overview
- The feature is live for verified U.S. customers, with New York excluded due to regulatory restrictions.
- Users post cbETH as collateral to access liquidity without selling ETH, preserving price exposure and staking rewards.
- Collateral is deposited into Morpho smart contracts on the Base network, with USDC available instantly and convertible to USD inside Coinbase.
- Loans carry variable interest, have no fixed repayment schedule, and face automated liquidation if risk thresholds are breached, with reports citing a 75% initial LTV and maintenance below about 86%.
- Coinbase signals plans to support additional collateral types, while Morpho reports over $1.25 billion in on-chain lending activity on Base, reflecting growing demand for staked-asset credit.