- Coinbase Earn led to the creation of 10,000 CDPs on the weekend
- The growth has been sustained one and not just new initial users effect
- The exchange also tackled several challenges posed by the decentralized finance apps
According to Coinbase’s latest report, Coinbase Earn launching the Dai Advanced Task resulted in users creating more CDPs (Collateralized Debt Positions) than ever.
Coinbase Earn is a platform that allows users to earn cryptos while learning about them via educational videos and performing tasks. It also helps foundations like MakerDAO by helping them expand user participation and found new users to distribute their dedicated tokens.
Given that the US-based exchange pulled the traffic of more than 16 million in December, down from 28 million in July, it offers a huge opportunity for the projects to reach out to a much bigger audience.
MakerDAO is a decentralized app that allows users to use ETH as collateral to create CDP in its USD-pegged stablecoin DAI.
In the previous 11 months, Coinbase reports that about 9,000 CDPs were created with MakerDAO.
The crypto trading platform launched the service on Friday, July 26, 2019 and on the weekend more than 10,000 CDPs were created however, debt positions haven't changed significantly.
The effect wasn’t lost right after that, Coinbase says, “It’s shown sustained growth for the network far past the initial new user effect.”
Tackling the Challenges
Coinbase finds that decentralized financial apps pose two major challenges to their users, fear of losing initial deposits and difficult to use.
Through Coinbase Earn, the exchange itself provides users with funds to complete the lesson such as in case of MakerDAO, a very small amount of ETH needed as collateral and to pay the network fee was given to the users wanting to learn about MakerDAO.
Coinbase also took the volatile gas prices into consideration and checked the ETH network for its users. If the prices are too high, it asks its users to come back later to complete the task.
In the case of MakerDAO, there has also been the problem of its UI not being designed for mobile. Here, Coinbase worked with the Maker team to make the Maker app mobile-friendly. As for determining whether a user has successfully created a CDP, they created a crawler that subscribes to all DAI events.
With this success, Coinbase provides the projects a bigger user base, with many of them being first time users.
“The DAI Advanced lesson has been a huge success for token development teams and for our community of users. By completing this task, many users directly engaged with a blockchain for the first time,” stated Coinbase.