Coinbase Integrates DEX Trading In Its App
By: Eva Baxter
Coinbase, a leading cryptocurrency exchange, has made a significant move by integrating Decentralized Exchange (DEX) trading directly into its app through Base, significantly increasing user access to a wider range of tokens. This development was announced on August 8 and marks a pivotal shift towards decentralized finance (DeFi) by merging the efficiency of DeFi markets with the user-friendliness of Coinbase’s centralized trading platform. The integration allows select U.S. customers, excluding those in New York State, to trade Base-native assets immediately after their launch, utilizing Coinbase's established interface.
This innovative feature positions Coinbase to capture a large share of the DeFi market. According to DefiLlama, Base recorded the fourth-largest spot monthly volume in July, surpassing the $41 billion mark. Initially, users will be able to discover and trade tokens from projects like Virtuals, SoSo Value Indices, Auki Labs, and Super Champs. The trades will be executed through leading protocols such as Aerodrome and Uniswap, ensuring the best pricing by scanning available liquidity.
To simplify the complexities of decentralized trading, Coinbase includes a built-in self-custody wallet, sponsors network fees, and enables transaction funding from users' Coinbase balances or USDC. This strategic rollout of DEX assets is being done in batches to maintain performance and reliability, with plans to index more Base assets and expand to other networks including Solana in the near future. The ultimate goal is to extend DEX access globally, ensuring enhanced transparency by blocking malicious or fraudulent tokens flagged by third-party vendors, and surfacing on-chain data for traders.
Jesse Pollak, the creator of the Base network, emphasized the democratizing impact of this integration, stating it levels the playing field for developers regardless of their previous listing status on centralized exchanges. By embedding DEX functionality within its consumer app, Coinbase is doubling down on asset accessibility and showcasing a robust commitment to nurturing the burgeoning on-chain economy. This move to bolster its exchange offerings positions Coinbase as a comprehensive exchange, as hinted at by the company’s vision to become an "everything exchange."
