Coinbase Case Study

Coinbase Wallet is using gasless swaps powered by 0x to optimize the user trading experience. Giving users flexibility with gasless swaps has been a major UX unlock for Coinbase Wallet, helping alleviate one of its top pain points.

Published on
January 30, 2024
Powered by 0x
Coinbase Case Study

Highlights:

  • Coinbase Wallet is using gasless swaps powered by 0x to optimize the user trading experience.
  • Gas is a major pain point: Insufficient gas is a major source of friction in DeFi with a significant impact on conversions. According to Coinbase, 69% of Ethereum swaps encounter a ‘not enough gas’ error when the user starts the trade, a large impediment to conversion.
  • Simplified UX with gasless swaps: Tx Relay works to supplement the existing trading flow in Coinbase Wallet powered by Swap API, enabling a simplified trading experience for users. Giving users flexibility with gasless swaps has been a major UX unlock for Coinbase Wallet.
  • User adoption: In December alone, thousands of Coinbase users opted for gasless trades via Tx Relay API.

Challenge: Optimizing the user trading experience

Coinbase has been an industry leader in onboarding users into Web3 by building products with real-world utility and best-in-class user experience. In 2021, Coinbase wanted to upgrade their Wallet experience to allow users to trade any token from day 1. Their search for a swap provider with expertise in DEX markets and a deep understanding of API infrastructure, reliability, and enterprise-grade security led them to 0x.

"0x has the most extensive and reliable DEX API service in the Web3 ecosystem, backed by a professional and responsive team. It’s been a pleasure working with them to launch our DEX features on Coinbase Wallet." - Sid Coelho-Prabhu, Director of Product at Coinbase 

As Coinbase Wallet evolved and matured, their team began investigating opportunities to optimize the user experience, particularly in the trading flow funnel. The expansion of our multi-chain world has increased the burden on users, requiring them to hold and maintain balances in multiple native tokens to cover gas as they move from ecosystem to ecosystem.

Insufficient gas is a major source of friction in DeFi with a significant impact on conversion. According to Coinbase Wallet, 69% of Ethereum swaps encounter a ‘not enough gas’ error when the user starts the trade, a large impediment to conversion. Coinbase Wallet was looking for a solution to abstract away the complexities around decentralized trading.

Solution: Gasless swaps and approvals

Tx Relay API enabled Coinbase to build on the foundation of a user-friendly experience by offering another powerful option in their trading flow: gasless swaps and approvals.

We’ve all been there - you go to make a trade only realize you don’t have enough gas when you go to submit it.

Tx Relay works to supplement the existing trading experience in Coinbase Wallet powered by Swap API. When a user goes to complete a transaction and doesn’t have enough gas, Coinbase Wallet will automatically switch over to the gasless experience, allowing them to quickly complete the trade without the need to top up for gas.

When a gasless trade is made, Tx Relay API covers the gas fee up front, and token approvals are combined into the transaction. This cost is then wrapped into the trade and paid by the user in the form of the token they’re trading, significantly simplifying the trading experience and eliminating one of the top causes of incomplete trades.

On top of the benefits of gasless swaps, Tx Relay API also helps improve the trading experience for Wallet users with:

  • Improved trade reliability: On average, 8-10% of DEX transactions fail, and during periods of network congestion that can spike to as high as 20%. Tx Relay API can stop potentially bad transactions before they’re even sent, saving the user gas fees and headaches.
  • Faster trade confirmations: Sometimes just a few cents in gas fees can be the difference between a transaction going through quickly and or getting stuck in the mempool. Tx Relay API dynamically adjusts gas fees in real time by optimizing for speed, making trades 2x more likely to land in the next block.
  • Protection from MEV attacks: Sandwich attacks target transactions in the public mempool, resulting in worse prices and a poor experience for users. Tx Relay API protects users from sandwich attacks by leveraging the latest advancements in the MEV space.

Results

Coinbase Wallet now offers users seamless trading for millions of tokens, with the ultimate in execution optionality between Swap and Tx Relay API. When users with insufficient gas attempt to submit a trade, Coinbase Wallet automatically switches to the gasless experience, allowing them to quickly complete the trade.

Giving users flexibility with gasless swaps has been a major UX unlock for Coinbase Wallet, helping eliminate one of its top pain points. In December alone, thousands of users opted for gasless trades.

Simplify user flows in your app with Tx Relay API

Tx Relay API enables you to improve conversion and reduce churn by offering gasless swaps directly in your app.

Check out our quick guide to start building with Tx Relay API today. New to 0x? Sign-up for an account for free on the 0x Dashboard.