This May be the Best Arbitrage Opportunity in Crypto

Hello defiers! Here’s what’s going on in decentralized finance:

• Huge arb opportunity in crypto
• Coinbase offering USDC deposit rate
• IKEA settles invoice on Ethereum

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This May be the Best Arbitrage Opportunity in Crypto

Coinbase Offers 1.25% Annual Return on USDC

Coinbase, which provides the most popular U.S.based crypto wallet, is now offering 1.25 percent annual return for users holding more than $1 of USDC.

Coinbase wants to keep users from leaving its platform and give them the option to convert fiat to crypto, trade and now also save on the same place. USDC is an ERC20, Ethereum-based stablecoin, backed by U.S. dollars. Coinbase won’t be lending users’ USDC and promises the tokens will always stay in users’ accounts.

It’s a good idea and for many users it will beat having USDC parked in their digital wallets, but 1.25 percent is much lower than what DeFi offers for USDC deposits (rates range from 3 percent to as high as 9 percent), and also lower what traditional fintechs offer for USD with rates at Wealthfront, Betterment and MArcus exceeding 2 percent.

IKEA Settled an Invoice Using Ethereum

IKEA Iceland has used Ethereum technology to settle an invoice with a local retailer. Supply chain payments firm Tradeshift facilitated the transfer using an Ethereum-based version of the Icelandic króna created by ConsenSys-backed startup Monerium.

Pessimistic Take: This is a transaction between two trusted parties, why does this even need a blockchain.

Optimistic Take: This is the first step into a blockchainized world with use-cases we are just starting to imagine. One of these use cases, courtesy of Martin Koppelmann: In addition about the advantages of having the invoice tokenized as an NFT that can be used as collateral for lending. The payment can then be done to the owner of the NFT (an ethereum adresse/contract) instead to a pre-specified bank account.

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