The US-based cryptocurrency exchange Coinbase has added the first ever stablecoin, Dai, to its educational portal Coinabase Earn. According to the official blog post by the platform, users will be able to educate themselves about the stable coin through the newly added course on MakerDao’s stablecoin Dai.
Since the entire crypto ecosystem is still relatively new, many proponents believe that a lack of proper education and legitimate information is what’s restricting the adoption of cryptocurrencies in general. This is where the San Franciscan crypto exchange, Coinbase steps in with its Earn Program. Their earlier press release read:
One of the biggest barriers preventing people from exploring a new digital asset was a lack of knowledge about that asset. Many of the people we surveyed expressed a strong desire to begin learning about new and different crypto assets beyond Bitcoin, but didn’t know where to begin.
First announced by the end of 2018, the venture provides people with an authentic platform to learn about cryptocurrency and its underlying blockchain technology. What makes the platform attractive for users is that it incentivizes them, meaning Earn gives users the chance to actually earn digital assets in exchange for consuming crypto knowledge.
Initially during its pilot period, the program was an invite-only initiative, which allowed users to earn cryptocurrency by learning about the ERC-20 token “0x” (ZRX). In addition to that, users can also earn various cryptos by taking their quizzes on the platform including Stellar Lumens (XLM), Zcash (ZEC) and Basic Attention Token (BAT). According to the Medium post on the launch of the platform:
The idea is for users to understand more about an asset’s utility and its underlying technology, while getting a bit of the asset to try out.
With the latest addition of the Ethereum-based stablecoin pegged to the U.S. dollar, Dai on the platform, users around the world will be able to earn up to $6 worth of the cryptocurrency. That is, if they participate in three lessons dedicated to Dai on the platform, which focus on what DAI is, what it can be used for, and how the Maker (MKR) protocol and economy ensures that the stablecoin is always valued at around $1. Each lesson involves informative videos followed by short quizzes, on completion of which the users will be rewarded with Dai tokens.
— Coinbase (@coinbase) June 10, 2019
According to its whitepaper, Dai is a decentralized stablecoin running on Ethereum and designed with a goal of maintaining a target value of approximately $1 USD. Furthermore, the paper explains that the Maker (MKR) and Dai tokens form a paired set of assets in which MKR provides governance, while DAI is a decentralized, collateral-backed stablecoin.
Many people see Coinbase’s free crypto approach as a way to entice people into the industry, and some aren’t fans of the exchange just throwing out altcoins through the program. But the fact remains authentic education is imperative if the crypto industry is to grow and by incentivizing consumers to learn about cryptocurrency, Coinbase is actually doing the budding industry a favor. The company wrote in its Medium post:
Coinbase strives to be a trusted source where customers can educate themselves about new developments in crypto, and we’re excited to offer people a new opportunity to learn about and earn Dai.
Coinbase’s initiative is without a doubt a step towards a more crypto aware tomorrow but it doesn’t come without its drawbacks. The one con of Coinbase Earn is that the on boarding process tends to be rather cumbersome for what seems to be of little value to some users. Users are required to submit identification and go through the whole know your customer (KYC) process before participating in Earn.
The addition to Dai comes only days after the platform added support for the EOS cryptocurrency for its retail customers. According to the announcement, the option would be available on Coinbase’s website and its Android and iOS apps, allowing users to buy, sell, convert, send, receive or just store EOS. However while the EOS option is now available for customers in “most” of Coinbase’s served jurisdictions, the U.K. and the U.S. state of New York have not been included for the time being.