O3 Labs has announced the integration of Coinbase Connect into v2.4.0 of its desktop wallet. O3 users will be able to interact with their Coinbase accounts to purchase supported cryptocurrencies such as USDC from their bank accounts, which may then be used for fee-free purchases on O3 Pay-enabled dApps such as O3 Swap.
Initial Fiat Gateway
Approximately one month ago, O3 noted the release of ‘phase 1’ of its fiat gateway, featuring credit card payments for NEO provided through Simplex. The implementation aimed to reduce the number of steps that O3 users would have to take before being able to purchase assets such as NEO when starting from fiat currencies.
An example user flow for these steps was outlined in the post as follows:
- Find a location to purchase ETH or BTC using bank transfer or credit card
- Transfer the purchased assets to a cryptocurrency exchange over blockchain
- Wait for the deposit, and place a buy order
- Withdraw assets to a privately owned wallet
O3 noted that each of these steps typically incurs fees, and contain their own UX hurdles such as KYC for each platform, waiting for blockchain confirmations, and the trading process itself.
Alternatively, when purchasing via the O3 Gateway, the user could pass a one-time ID check before being able to pay directly with a credit card and receive NEO at a specified address.
This process was noted to be faster than the conventional user flow listed previously and require fewer steps. However, it introduced maximum payment limits and typically resulted in an above the market rate being paid, in addition to a high one-time fee.
By implementing Coinbase into its wallet applications, O3 has introduced ‘phase 2’ of its fiat gateway mechanism, providing a third option to its users that have Coinbase accounts. This is hoped to further reduce the complexity of purchasing NEO and GAS with fiat.
After a user has connected their Coinbase account to the O3 wallet, payments can be sent or requested by dApps in the same way they would when paying using NEO-based assets via the O3 Pay service.
The first O3 Pay-compatible dApp is O3 Swap, which allows users to send popular cryptocurrencies such as BTC and ETH in return for NEO, GAS, ONT, or ONG.
Following the Coinbase integration, users with USDC loaded in their Coinbase accounts will be able to directly purchase NEO and GAS without paying fees, with the exception of a small Ethereum mining fee (approximately $0.05). Loading a Coinbase account with USDC via bank transfer is currently feeless.
Below is the outline for the new user flow, assuming the user has connected a Coinbase Account loaded with USDC to their O3 Wallet:
- Open the O3 Swap dApp
- Select USDC as the send asset, and specify the desired asset to receive
- Enter the address to receive the swapped assets along with the quantity to purchase
- Confirm the payment via the O3 dAPI notification tray
More information and guidelines on the process can be found in the O3 user guide. O3 notes that users should be sure to specify their desired daily spending limit and that the same process can be used to swap from BTC, ETH, or other supported assets.
Version 2.4.0 of the O3 Desktop Wallet may be downloaded on the O3 website, with mobile support to follow in the near future. Users are recommended to share feedback or suggestions on the O3 forum, and can contact email@example.com in the event of any issues.