Coinbase is making it easier for users to access DeFi on Ethereum.
On May 16, the American cryptocurrency exchange shared a wallet that lets customers access Ethereum-based dapps in the Coinbase app.
Supported DeFi protocols include decentralized exchanges Uniswap and Sushiswap, borrowing and lending platforms Curve and Compound, and NFT marketplaces OpenSea and Coinbase NFT.
Coinbase is rolling out the new features to a small group of U.S.-based Android users. Coinbase did not mention whether it will charge extra fees to use the dapps.
Customers will not have to manage their private keys. Instead, the dapp wallet’s private key is split between users and Coinbase, meaning that Coinbase’s support agents can help customers recover them – but that Coinbase ultimately controls user funds.
Coinbase said in a recent filing that customer funds would be considered part of its estate if the exchange went bankrupt. It is unclear if it could also claim funds held in the on-chain dapp wallet. Coinbase did not respond to a question on the matter by press time.
In a May 10 filing, Coinbase disclosed losses of $430M in the first quarter of this year. The company attributed the loss to a 43.5% drop in retail trade volume and an increase in its operating expenses. Coinbase shares dropped 16% on the news, marking a more than 75% retracement this year.