What are the differences between Coinbase and MakerDAO?

3 answers

• Dec 29, 2021 · 3 years ago
  Coinbase and MakerDAO are two prominent players in the cryptocurrency industry, but they differ significantly in their offerings and target audiences. Coinbase is primarily a cryptocurrency exchange platform that allows users to buy, sell, and store various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. It caters to both individual retail investors and institutional clients, providing a user-friendly interface and secure storage options. On the other hand, MakerDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. It focuses on the creation and management of the stablecoin DAI, which is pegged to the US dollar. MakerDAO's primary goal is to provide a stable and decentralized alternative to traditional fiat currencies. While Coinbase offers a wide range of cryptocurrencies for trading, MakerDAO's main focus is on the stability and utility of its stablecoin.
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• Dec 29, 2021 · 3 years ago
  When it comes to their business models, Coinbase generates revenue through transaction fees and commissions on trades made on its platform. It also offers additional services, such as Coinbase Pro for advanced traders and Coinbase Custody for institutional clients. MakerDAO, on the other hand, operates on a decentralized model and does not charge any fees for using its platform. Instead, it relies on the stability fees generated from loans made with DAI as collateral. These fees are used to maintain the stability of the DAI stablecoin and ensure its peg to the US dollar.
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• Dec 29, 2021 · 3 years ago
  As for their target audiences, Coinbase caters to a wide range of users, including retail investors, traders, and institutional clients. It aims to provide a user-friendly and accessible platform for buying, selling, and storing cryptocurrencies. On the other hand, MakerDAO's target audience consists of individuals and businesses looking for a stable and decentralized alternative to traditional fiat currencies. It appeals to those who value the transparency and security offered by blockchain technology and decentralized finance (DeFi) solutions.
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