Dai is an Ethereum-based stablecoin developed by MakerDAO that provides users with a decentralized cryptocurrency rather than the many centralized stablecoin products that fill the market today.
While decentralized finance products that oppose the traditionally centralized model do not have the same level of acceptance or adoption as their more widely utilized counterparts, Coinbase’s decision to include Dai on Coinbase Commerce platform exposes the asset to millions of merchants and platforms who use the service, including big names like Shopify and WooCommerce. According to their own report on the development, they estimate that, through the two e-commerce providers listed above, Dai can receive exposure to over 800,000 stores and three million shops.
MakerDAO goes on to explain why this is not only great for the health of their stablecoin but for the decentralized finance industry as a whole in the statement below:
“Decentralized Finance (DeFi) is a popular movement sparked by the benefits that cryptocurrency and blockchain technologies bring to the financial services sector. Specifically, DeFi allows for inexpensive and more efficient and transparent financial products. The most useful decentralized digital currencies, like Dai, improve financial services because they level the playing field and remove the need for intermediaries. Without third party interference, individuals can simply transact peer-to-peer.”
MakerDAO hopes to attract users with both the ease-of-use of the Coinbase Commerce platform (such as the ability to add a “pay with crypto” button to their website) and the stability provided by the Dai stablecoin. They also hope that users will take advantage of the savings opportunities, which gives users of the crypto the opportunity to earn 7.5 percent annually on the amount that they choose to store away.
With the combined influence of Coinbases’s excellent business models and Dai’s ambition, we may see the stablecoin thrive as merchants seek out ways to incorporate crypto into their e-commerce platforms.