Coinbase is quickly expanding the range of products it offers to clients as it announces that some select users are now able to access DeFi, among other DApps on the Ethereum blockchain via Coinbase app.
Coinbase, the US largest crypto exchange, has unveiled a new Web3 application functionality, including a browser and hot wallet, for a limited set of mobile app users.
New Web3 Functionality Supports a Wide Range of Blockchain-Based Services
Using the app, the select users will be able to access DApps on the Ethereum network, such as OpenSea and Uniswap.
Announcing the news on 17th May 2022, Rishi Dean, the director of product management at Coindesk, explained that eligible users will now be able to do the following:
- Start trading non-fungible tokens (NFTs).
- Making swaps on decentralized exchanges (DEX).
- Interacting with decentralized finance (DeFi) lending protocols to lend/ borrow funds.
The DApp and wallet functionality are run with multi-party computation (MPC) technology that secures the privacy of senders and receivers. It is also very useful in enhancing the accuracy of every transaction.
According to Dean, sharing the custody of keys is an important security feature to help protect users from device-related issues. “This means if you lose access to your device, the key to your DApp wallet remains safe and Coinbase can assist in recovery through our live support,” wrote Dean.
Coinbase’s expanded wallet functionality is very important for Web3 developers who might have difficulties trying to onboard new users to showcase their work. According to Statista, the exchange now has about 90 million registered users.
The launch comes weeks after Coinbase launched its Coinbase NFT marketplace at the start of the month. However, the performance on the first day fell below the expected trade levels, reporting only USD75,000 in sales volume.
According to the Q1 earnings report, the exchange was shown to be struggling by posting the first net loss since going public in 2021. The monthly users dropped from 11.4 million in Q4 of 2021 to 9.2 million, while revenue plummeted 27% to USD1.1 billion from USD1.6 billion year-on-year since Q1 2021.