Coinbase Commerce Adds DAI Stablecoin As A Payment Option For Online Retail Stores
- Coinbase commerce platform launches support for Maker’s DAI stablecoin.
- Retailers to earn extra Dai by locking tokens in the Dai Savings Rate (DSR) contract.
In the course of this week Coinbase announced via its official twitter account, the support of Maker’s stablecoin, DAI, as a tradable and transferable asset.
🚨 We are proud to announce the 🚀 launch 🚀of DAI stablecoin on Coinbase Commerce 🚨
Starting today, merchants can accept DAI as a form of payment using the Commerce API, checkouts, or via one of our 12 e-commerce integrations 🔥
Learn more 👉 https://t.co/c2vqd3Dbje
— Coinbase Commerce (@CommerceCB) February 13, 2020
Stablecoins are cryptocurrencies that have low volatility as they are backed by fiat currencies or precious metals. The latest launch of DAI across Coinbase commerce merchants is set to provide a gateway to some of the largest online stores such as Shopify and Woocommerce to the crypto users.
With the online store providing a market of over 800,000 stores and 3 million merchant shops, the DAI is set to gain considerable adoption given its low volatility. Furthermore, the platform will offer zero fee transactions to users of DAI.
Retailers set to earn additional Dai
Retailers and merchants can also earn extra DAI by earning interest through staking their tokens in their accounts. According to the report, users will be able to earn additional 7.5% annually (current rate) by transferring the Dai they receive after transactions to the Dai Savings Rate (DSR) contract through a recently enabled feature in the Maker Protocol.
This locks down their Dai but they can simply opt out of the DSR mode enabling them to withdraw any or all of their Dai at any given moment. It also offers the retailers a savings alternative as Dai locked in DSR is not affected by inflation according to their website.
With increased Decentralized Finance (DeFi) interests brought about by the potential of Blockchain and crypto Currently Decentralized Finance. DeFi offers users an edge as it is cheaper, better efficiency and is relatively faster. This could be attributed to the fact that it is peer to peer with no actual intermediaries. Currently DeFi has realized transactions summing to almost $1 billion.
According to Maker Foundation CEO, Rune Christensen,
“DeFi is a new generation of products that are entirely transparent, where users can see exact cash flows while achieving greater levels of trust and security that can be audited in real time. DeFi also incorporates the global nature of blockchain and its advantages, making these more efficient systems with lower fees and higher yields.”