Coinbase has turned “borrow U while your gold just sits there” into a feature.
Under the hood, it’s borrowing USDC on Morpho against PAXG collateral, with a liquidation threshold of around 77%, a floating interest rate, and New York excluded. The official pitch: gold in the vault, liquidity in your account. If gold takes a plunge, it’s not that you “didn’t sell your gold”—you get liquidated, and could even end up owing more.
Someone added one more warning: collateral health is updated only during gold trading hours. Who covers the gap on weekend nights? This is DeFi leverage shoved into an app, not a bank gold loan. Coinbase gets the on-ramp, Morpho gets the protocol fees, and you take the liquidation hit.
#Coinbase #PAXG
Under the hood, it’s borrowing USDC on Morpho against PAXG collateral, with a liquidation threshold of around 77%, a floating interest rate, and New York excluded. The official pitch: gold in the vault, liquidity in your account. If gold takes a plunge, it’s not that you “didn’t sell your gold”—you get liquidated, and could even end up owing more.
Someone added one more warning: collateral health is updated only during gold trading hours. Who covers the gap on weekend nights? This is DeFi leverage shoved into an app, not a bank gold loan. Coinbase gets the on-ramp, Morpho gets the protocol fees, and you take the liquidation hit.
#Coinbase #PAXG