“Merchants around the world can now accept Dai as a payment for goods and services in minutes. Moreover, merchants do not pay a fee to use Coinbase Commerce, making onboarding free in addition to simple and secure.”
This news comes as a big surprise as many would have thought Coinbase would opt to only supporting USDC, thus driving any interest for stable payments to the Coinbase-native asset.
Why Does This Matter?
Beyond the premise of optionality for users to spend what many have come to call the defacto DeFi stablecoin, this partnership further allows merchants to see some of the immediate benefits to supporting DeFi assets.
Underneath the hood, Coinbase Commerce will provide onramps for merchants to leverage the Dai Savings Rate, effectively earning an attractive APR on all sales made through the solution.
|Date Changed||New DSR||Change (+/-)|
|March 24th, 2020||0%||(-4%)|
|March 19th, 2020||4%||(-4%)|
|February 26th, 2020||8%||(+0.5%)|
|February 12th, 2020||7.5%||(-1.25%)|
|February 5th, 2020||8.75%||+1%|
|January 27th, 2020||7.75%||+1.75%|
|January 8th, 2020||6%||+2%|
|December 7, 2019||4%||(0)|
While we fully recognize that the number of users wishing to pay in Dai is extremely minimal, it’s a nice stepping stone towards the eventual adoption and evolution of cryptocurrencies becoming spendable in a traditional fashion.
What to Expect
Over the next few years, it’s likely that more merchants will recognize the benefit of being able to put their profits to use within the DeFi ecosystem.
While it’s largely focused on the DSR in today’s terms, there will certainly be other opportunities for merchants to access composability through solutions beyond Coinbase Commerce.
If one thing is for certain, the opportunities for merchants to accept cryptocurrencies in a reliable, stable currency are becoming more and more feasible by the day.
The more opportunities non-technical users can enjoy when accessing the tip of the DeFi iceberg, the more likely it is for them to explore even furher.
To stay up on all things Coinbase Commerce, please visit this resource.
Cooper is the Editor of DeFi Rate and a contributor to leading DeFi outlets like the Defiant and Bankless. He is active in the DAO ecosystem through projects like MetaCartel and Raid Guild where he seeks to incubate governance models and grassroots community development. He is an ambassador of Set Protocol and the Director of Fitzner Blockchain Consulting where he authors a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.