Providers / Coinbase (Morpho)
Coinbase (Morpho)
Crypto-backed loan via Morpho on Base
Coinbase UI for Morpho on Base. BTC converts 1:1 to cbBTC as collateral. You borrow USDC. Rate is variable. Liquidation LLTV is 86% on the documented BTC path.
Best for: Coinbase users who accept wrapped BTC and a variable on-chain rate for convenience.
Product and eligibility
Product type
DeFi revolving (via Coinbase UI)
Collateral
Wrapped BTC (cbBTC on Base)
Eligible borrowers
Verified Coinbase customers (product eligibility)
US availability
US excluding New York; other regions may differ
Custody and counterparty
Custody model
DeFi smart contract
Smart-contract risk plus cbBTC wrapper/custody risk (not classic CeFi loan desk)
Rehypothecation
PoR / audits / insurance
Morpho Blue market params; cbBTC is Coinbase-wrapped BTC
Track record
Large on-chain originations via Coinbase + Morpho
Call, cure, and liquidation
Notice, grace period, partial vs full sale, and fees all differ by provider.
1. Starting LTV
85%
2. Margin call
No classic margin call; position is liquidatable when LTV exceeds 86% LLTV
3. Cure window
Repay or add collateral before liquidation threshold
4. Liquidation
86%
At 85% starting LTV, Bitcoin must fall about 1.2% for LTV to reach 86%.
- Max initial LTV
- Up to just under 86% (market LLTV)
- Liquidation style
- Permissionless on-chain liquidation; liquidator can repay up to full debt
- Liquidation fee
- 4.38% liquidation incentive (86% LLTV Morpho formula / Coinbase)
- Collateral retrieval
- Full repay returns remaining collateral; mid-loan excess pull via Coinbase UI not clearly disclosed
Cost and terms
| Rate range | Variable (Morpho AdaptiveCurveIRM / utilization); marketing often from ~5%+ |
|---|---|
| Origination fee | 2% on first $250k borrowed, 1% above (US; added to principal) |
| Prepayment fee | Not disclosed (repay anytime; no maturity) |
| Renewal / refinance | N/A (open-ended) |
| Minimum loan | Not disclosed |
| Term options | Open-ended; no fixed maturity |
| Liquidation fee | 4.38% liquidation incentive (86% LLTV Morpho formula / Coinbase) |
| Collateral retrieval | Full repay returns remaining collateral; mid-loan excess pull via Coinbase UI not clearly disclosed |
| US availability | US excluding New York; other regions may differ |
| Unique features | Up to $5M USDC vs BTC (as of 2026-05 product updates); gas sponsored claims; multi-asset path also exists |
Who this is best for
Coinbase users who accept wrapped BTC and a variable on-chain rate for convenience.
Who should skip
You need native BTC custody, a fixed APR, USD bank proceeds, or a timed grace period.