Deribit’s introduction of a yield program for USDC holdings, facilitated by a strategic partnership with Coinbase, signals an evolving landscape for capital efficiency within the cryptocurrency derivatives market. This initiative allows participants to earn passive income on their stablecoin assets, targeting an annual yield of up to 4%, while simultaneously enhancing the utility of USDC as collateral for trading activities.
- Deribit has launched a USDC yield program in strategic partnership with Coinbase.
- The program aims to offer an annual yield of up to 4% on USDC holdings by July 2025.
- Eligibility requires USDC to be held directly on the Deribit platform, subject to geographic and custodial criteria.
- Yield is calculated daily based on minimum balances and disbursed as a single monthly payment.
- USDC used as collateral now qualifies for 100% face value, eliminating the prior 2% haircut.
Eligibility and Custody Requirements
Participation in the USDC rewards program is governed by specific criteria pertaining to geographic location and asset custody. Retail users qualify based on their country of residence, while corporate entities must be registered and primarily operate within approved jurisdictions. A fundamental requirement is that USDC must be held directly on the Deribit platform. Balances maintained externally or with third-party custodians, such as Fireblocks, are not eligible for rewards. However, users employing hybrid custodial structures may still earn rewards on the portion of USDC explicitly held with Deribit.
Yield Calculation and Distribution
Rewards are calculated daily based on the minimum USDC balance observed at a specific daily snapshot time. These daily accruals are aggregated throughout the month, with the total disbursed as a single payment in the subsequent month. For example, balances held from July 15th to July 31st would be rewarded in early August. This methodology ensures that the payout reflects the lowest daily holding during the specified accrual period. Maintaining a consistent balance of 100,000 USDC at an annual percentage rate (APR) of 3.65% (0.01% daily) would, for instance, accrue approximately 300 USDC over 30 days.
Enhanced Capital Efficiency for Traders
A significant ancillary benefit of this program is the optimized utility of USDC as margin collateral. Deribit now permits USDC to be used at its full face value for collateral purposes, eliminating the previously applied 2% haircut, effectively reducing it to 0%. This enhancement allows traders to simultaneously generate yield on their USDC holdings while leveraging the full value of these assets for derivatives trading, thereby maximizing capital efficiency within their trading strategies.
For sophisticated investors and institutions operating within the cryptocurrency derivatives ecosystem, Deribit’s USDC rewards program represents a compelling dual value proposition. It offers a structured mechanism for generating passive income from stablecoin holdings, combined with improved collateral management, thereby enhancing overall capital optimization strategies in a professional trading environment.
Jason Walker, aka “Crypto Maverick,” is the energetic new member of cryptovista360.com. With a background in digital finance and a passion for blockchain, he makes complex crypto topics engaging and accessible. His mix of analysis and humor simplifies volatile market trends. Outside work, Jason explores tech, enjoys spontaneous road trips, and American cuisine. Crypto Maverick is ready to guide you through the ever-changing crypto landscape with insight and a smile.