Coinbase’s newest lending product is generating profits for the crypto exchange in several ways, but not all are reflected clearly on-chain. As the firm lets customers deposit wrapped Bitcoin and Circle’s USDC into “vaults” on decentralized finance protocol Morpho, it’s earning cash from stablecoin reserves and transaction fees indirectly. It’s also taking a cut of performance fees that are designed to incentivize risk managers on the platform, Coinbase has confirmed to Decrypt. DeFi offers the promise of a ...