Coinbase and Robinhood Launch ~7% USDC Yield Products with Different Structures

ChainCatcher report: Several days after Robinhood Earn launched a 7% yield campaign, Coinbase introduced a high-yield layer for USDC lending at an annualized rate of approximately 7.02%, roughly double its standard layer rate of 3.63%. Both yield layers route funds through Morpho, a decentralized lending protocol with a TVL of $7.11 billion, curated by Steakhouse Financial. However, according to analysis by the account Pink Brains, the underlying yield structures differ fundamentally. Robinhood’s 7% yield consists of borrower interest, returns from USDG Treasury reserves, and subsidies distributed via Merkl, which bridge the gap between organic yield and the 7% target. Organic yield alone amounts to only about mid-3%, meaning roughly half of the return is subsidized. Coinbase, by contrast, recycles funds through perpetual contract funding rate arbitrage with Ethena’s USDe, then adds MORPHO token rewards—offering no guaranteed floor but also no fixed cap. Pink Brains noted that Coinbase’s blended yield, including rewards, has already declined to 4.44%. Robinhood’s subsidy commitment lasts one year, betting that organic yield will rise with increased borrowing demand; Coinbase’s campaign is unofficially estimated to run until mid-September.