Dai, a flagship stablecoin within the burgeoning decentralized finance ecosystem of Ethereum, makes a significant entry.
DeFi ) ecosystem, just hit the big time on Coinbase’s main platforms for retail investors.On May 23rd, the colossal cryptocurrency company based in San Francisco declared its decision to list Dai on its primary website, Coinbase.com, and its mobile apps for both Android and iOS.
This new development is a pivotal move for the stablecoin, addressing a previous gap in major fiat gateway access for its community.
With this change, individuals aiming to either pay off their collateralized debt positions (CDPs) or simply hedge against the wild volatility of other cryptocurrencies can conveniently acquire Dai with traditional money directly on Coinbase’s renowned platforms, skipping the previously necessary step of first obtaining another crypto like ether (ETH) to exchange into Dai.
DAI is now live at https://t.co/wHvnDs40HG
Additionally, within the Coinbase iOS and Android apps, customers can now engage in purchasing, selling, converting, sending, receiving, or even storing DAI.
— Coinbase ????️???? (@coinbase) May 23, 2019
It is essential to note that Dai trading had earlier commenced for selected regions on Coinbase's advanced trading division, Coinbase Pro, back in December 2018. This Thursday's comprehensive launch extends support for this token across Coinbase’s broader brand.
This initiative marks the introduction of the first stablecoin within Coinbase’s platform that doesn't rely on U.S. dollars safeguarded in traditional bank accounts, as seen with USD Coin (USDC).
Instead, Dai's creation involves an innovative approach where dollar-pegged tokens come into existence as users collateralize ether (ETH) for self-loan purposes within MakerDAO's collateralized debt positions (CDP). Conversely, Dai is removed from circulation as these CDPs are resolved and closed.
Recently, Dai's market value occasionally dipped below its intended $1 USD mark, prompting the Maker community to heighten their focus.
hike up CDP interest ratesThis led to interest rates rising as high as 19.5 percent to encourage users to resolve their CDPs, thereby reducing the supply of Dai and reinforcing its peg.
This strategic initiative appears to be effective as, according to Coinbase's reports, the value of Dai has stabilized back to its ideal $1.00 this month.
new portal pageIn the future, Maker's leadership is evaluating the possibility of adjusting Dai’s interest rate further to maintain price stability.
within a range of 13.50% to 23.50% “, per the project’s blog.DeFi Developments: Compound Version 2 Sees Release; Coinbase Wallet Now Supports It
Compound, currently recognized as the second-largest DeFi platform across the entire cryptospace, shared exciting developments on May 23rd with the successful debut of version 2 of its lending protocol.
We are elated to unveil the public introduction of Compound v2, an interest rate mechanism aimed at fueling future financial markets and applications.
https://t.co/OyT7CVWieD???? ???? ⚖️
— Compound Labs (@compoundfinance) May 23, 2019
The latest version of Compound showcases cTokens, which represent tokenized formats of assets contributed by users to supply liquidity to the platform. These tokens earn interest and can be traded even when the original assets are locked. Supported cryptocurrencies currently include ether, Dai, USDC, 0x (ZRX), Augur (REP), and Basic Attention Token (BAT).
Coinbase's decentralized app (dapp) browser, known as Coinbase Wallet, joined among the pioneering projects to incorporate compatibility with Compound v2 and its cTokens from its inception.
Big shoutout to the @CoinbaseWallet
The call to action invites users to experience cTokens by contributing an asset for minting one.
@compoundfinance via @CoinbaseWallet pic.twitter.com/a04x3oJUeH— JSON (@jaysonhobby) May 23, 2019
The Rise of Decentralized Finance Continues Within the Cryptocurrency Realm
The month of May was pivotal for the DeFi narrative, recording its most significant activity as major decentralized lending platforms based on the Ethereum blockchain marked rising valuation figures.
crossed the $100 million valuation mark for the first time ever.The currently leading DeFi ventures, as tallied by DeFi Pulse, are Maker, Compound, Dharma, and Uniswap. The first three are pillars of crypto lending, all anchored on Ethereum. Completing the list is Uniswap, gaining traction as a popular decentralized exchange (DEX).
Dominating the scene is Maker, having amassed over $430 million in ether locked within its CDPs – notably dwarfing the $23 million ETH total secured by Compound, its closest contender.
While standings may shift in the cryptocurrency landscape in future years, it’s evident that the top two DeFi initiatives are likely to see strengthened positions, especially with increasing backing from Coinbase.
