Coinbase veers into the DeFi space; Centralized exchange no more?

Sahana Kiran
Source – Unsplash

Coinbase, one of the US’s prominent crypto exchanges has been making headlines with timely updates. Fending off the bankruptcy rumors and its failed NFT launch, the exchange was making a comeback with its latest addition. In a recent blog post, the exchange announced that it would be exploring the DeFi arena a little more than it already has.

Despite starting off as a decentralized industry, the crypto-verse was forced to paint itself in centralized colors. However, a part of the market continues to uphold the ethos of crypto. Ethereum [ETH] has been the face of the DeFi space for years now. As a result, Coinbase has decided to allow a “small set” of its users to touch the roots of the DeFi market.

According to its latest addition, Ethereum-based dApps will be made available on the Coinbase app. This isn’t all, users will also be given the chance to veer into the NFT space. With this, the small set of users would be allowed to make purchases of NFTs from either Coinbase’s NFT platform or even OpenSea.

In addition to this, trading on decentralized exchanges (DEX) such as Uniswap and Sushiswap will also be permitted. Curve and Compound, two DeFi systems, would allow users to perform borrowing and lending operations.

Limited to Android users for now

As of now, only US users would be able to avail these services. Elaborating on the same, the exchange wrote,

“To get started, go to the new “Browser” tab in the navigation bar at the bottom of the Android mobile app screen, and set up your new dapp wallet. Once set up, you can search, discover, and use Ethereum-based dapps directly in the new dapp browser of the Coinbase app.”

Community lauds Coinbase

The community praised Coinbase’s plan to pursue the DeFi area via web3 dapps. The community repeatedly emphasized the fact that this wallet did not need key management. The exchange’s dapp wallet and dapp browser further make this even easier.

Furthermore, the Chief Product Officer at Coinbase took to Twitter to announce the same to the community.