Coinbase High-Yield Vault Surpasses $100M in Deposits After Ethena Integration

A new high-yield USDC vault on Coinbase has surpassed $100 million in deposits just days after its launch, driven by Ethena's integration and Morpho activity.

The vault, curated by Steakhouse Financial and powered by Morpho, uses dynamic collateral that includes assets powered by Ethena. This combination has attracted significant user interest, with the related USDe/USDC supply market showing another $53.88 million in TVL, bringing the total to over $107 million.

The product's success is seen as a vote of confidence for DeFi lending within Coinbase's app, which offers a lower-friction experience compared to traditional DeFi protocols. Users can lend USDC through the exchange's interface without needing to separately connect to Morpho or manage third-party front ends.

However, it's worth noting that the High Yield vault carries more risk than simply holding USDC, with a broader collateral mix and higher borrower demand supporting higher yields. The product also includes smart contracts, collateral volatility, liquidity conditions, and market stress as part of its risk profile.