This week, Coinbase, the San Francisco-based exchange, revealed a new perk for usd coin (USDC) holders using its wallet. “Introducing USDC rewards on Coinbase Wallet,” the company shared on X. “For the first time ever, earn 4.7% APY with USDC Rewards simply by holding USDC in your wallet onchain.”
Along with the announcement, Coinbase released a video explaining the feature and noted that users can get started by updating their mobile app to the latest version and checking their USDC balance. After the announcement, Bitmex co-founder Arthur Hayes jumped on social media to boast about Ethena’s USDE APY. “F*** your 4.7%, staked USDE ([Ethena Labs]) is offering 29%. Don’t be a dumb dumb,” Hayes quipped.
Not everyone saw eye to eye with Hayes’ commentary. “With all due respect, there’s a big difference between locking your USDC in a protocol with potential risks and simply holding it securely in your wallet for rewards,” one X user replied to Hayes. “Comparing the two isn’t fair, and this kind of comment feels more dismissive than constructive.”
Hayes responded to the critique by stating:
With all due respect, you are a d**che nozzle. Just yolo and stfu!
Someone else chimed in, asking Hayes if he still had a stake in WORM. “Yes ser,” the Bitmex co-founder responded. “But I wouldn’t tell you when I sell so I wouldn’t put too much confidence in whatever I say.”
Another person questioned Hayes about his USDE holdings, saying, “Be honest would you hold all your stable in USDE? Remember last bull and previous bulls there is always a stable that depegs chasing that 29% can be a very costly mistake for many.”
Hayes replied and said:
You can look on chain on my doxxed wallets and see the amount of sUSDE held. I do use USDC and USDT as they are more widely accepted forms of collateral for trading. But as the [Ethena Labs] team keeps gaining more integrations my need for other stables declines.
The clash between convenience and high-risk returns echoes past events in the crypto space. While Coinbase’s option is considered secure and safe by some, and it may appeal to cautious investors, to some onlookers, Hayes’ push for USDE’s high-yield returns evokes memories of the Terra blockchain and the UST collapse. Anchor once promised a 20% APY before failing, reminding everyone that chasing high rewards often comes with significant risks.
