Ritenoob/coinbase-cdp-integration

Coinbase CDP Integration

Problem

Integrating cryptocurrency payments requires choosing between Coinbase's two products: Coinbase Commerce (simple payment processor) vs CDP (comprehensive developer platform), understanding their differences, and implementing the right solution.

Context / Trigger Conditions

Use this skill when:

• Adding crypto payment acceptance to a marketplace/app
• Building wallet features or onchain functionality
• Choosing between Coinbase Commerce and CDP
• Implementing multi-chain support (Ethereum, Solana, Base, etc.)
• Needing embedded wallets or payment infrastructure

Coinbase Products Overview

Coinbase Commerce (Payment Processor)

Purpose: Accept crypto payments from customers (like Stripe for crypto)

Features:

• Hosted checkout pages
• Support for BTC, ETH, USDC, USDT, DAI
• Webhook notifications for payment events
• Automatic fiat conversion
• Simple merchant-focused API

Use when:

• Building e-commerce/marketplace payment flow
• Need simple "pay with crypto" button
• Want Coinbase to handle custody and conversion
• Don't need blockchain interactions

API: https://commerce.coinbase.com/ Docs: https://docs.cloud.coinbase.com/commerce/docs

CDP (Coinbase Developer Platform)

Purpose: Build onchain applications with wallets, transactions, and blockchain APIs

Features:

• Server Wallets v2: Backend wallet management, 250 TPS throughput, sub-200ms latency
• Embedded Wallets: User wallets without seed phrases, built-in onramps/trading
• Policy Engine: Transaction limits, approve/deny lists, multi-rule governance
• Smart Accounts: EVM smart contract wallets (Base, Ethereum, Arbitrum, Optimism, etc.)
• Solana Support: Send transactions, sign & broadcast in one call
• Onramp/Offramp API: Fiat ↔ crypto conversion with Apple Pay support
• AgentKit: AI agents interacting with blockchain
• OnchainKit: React/TypeScript SDK for building onchain UIs

Networks supported:

• EVM: Ethereum, Base, Arbitrum, Optimism, Polygon, Zora, BNB, Avalanche
• Solana

Use when:

• Building DeFi features (lending, staking, trading)
• Need programmatic wallet creation
• Implementing blockchain interactions in your app
• Building onchain games or NFT platforms
• Automating mass payouts or treasury operations

API: https://docs.cdp.coinbase.com/api-reference/v2/introduction Portal: https://portal.cdp.coinbase.com/

Implementation Patterns

Pattern 1: Simple Crypto Checkout (Commerce)

Stack: Coinbase Commerce + Webhooks

// 1. Create charge (server-side)
const charge = await coinbaseCommerce.charges.create({
  name: "Order #123",
  description: "Customer order",
  pricing_type: "fixed_price",
  local_price: {
    amount: "100.00",
    currency: "USD"
  },
  metadata: {
    order_id: "order-123"
  }
});

// 2. Redirect user to charge.hosted_url
window.location.href = charge.hosted_url;

// 3. Handle webhook for payment confirmation
// POST /webhooks/coinbase
// Verify signature, update order status

Pattern 2: Embedded Wallets (CDP)

Stack: CDP Embedded Wallets + Onramp

// 1. Initialize CDP SDK
import { Coinbase } from "@coinbase/coinbase-sdk";

const coinbase = new Coinbase({
  apiKeyName: process.env.CDP_API_KEY_NAME,
  privateKey: process.env.CDP_PRIVATE_KEY
});

// 2. Create user wallet
const wallet = await coinbase.createWallet({
  networkId: "base-mainnet"
});

// 3. Fund with onramp (Apple Pay)
const onrampSession = await coinbase.createOnrampSession({
  walletAddress: wallet.address,
  amount: "50.00",
  currency: "USD",
  paymentMethod: "apple_pay"
});

// 4. Send transaction
const transaction = await wallet.sendTransaction({
  to: recipientAddress,
  amount: "10.0",
  asset: "USDC"
});

Pattern 3: Server Wallets for Mass Payouts (CDP)

Stack: CDP Server Wallets v2 + Policy Engine

// 1. Create server wallet with policies
const wallet = await coinbase.createServerWallet({
  networkId: "base-mainnet",
  policies: [
    {
      type: "transfer_limit",
      asset: "USDC",
      maxAmount: "1000.00",
      timeWindow: "24h"
    },
    {
      type: "allowlist",
      addresses: [recipient1, recipient2, recipient3]
    }
  ]
});

// 2. Batch payouts (250 TPS)
const payouts = await wallet.batchTransfer([
  { to: employee1, amount: "500", asset: "USDC" },
  { to: employee2, amount: "750", asset: "USDC" },
  { to: employee3, amount: "600", asset: "USDC" }
]);

Architecture Decision Tree

Need crypto payments?
├─ Just accept payments → Coinbase Commerce
│  └─ Simple checkout, webhooks, fiat conversion
│
└─ Build onchain features → CDP
   ├─ User wallets needed?
   │  ├─ Yes, users manage → Embedded Wallets
   │  └─ No, backend managed → Server Wallets v2
   │
   ├─ Need fiat onramp?
   │  └─ Yes → Onramp API (Apple Pay, card)
   │
   ├─ Transaction governance?
   │  └─ Yes → Policy Engine (limits, allowlists)
   │
   └─ Multi-chain support?
      └─ Yes → Smart Accounts (EVM) or Solana APIs

Key Differences: Commerce vs CDP

| Feature | Coinbase Commerce | CDP | |---------|------------------|-----| | Purpose | Accept payments | Build onchain apps | | Custody | Coinbase holds funds | You control wallets | | Networks | Bitcoin, Ethereum, others | EVM + Solana (programmable) | | Complexity | Simple (like Stripe) | Advanced (blockchain APIs) | | Use case | E-commerce checkout | DeFi, NFTs, onchain logic | | Pricing | 1% transaction fee | API usage-based | | Wallet creation | No | Yes (embedded or server) | | Fiat conversion | Automatic | Via Onramp API |

RidenDine Implementation Status

Current: Coinbase Commerce for crypto checkout

• Edge Function: create_crypto_payment (creates Commerce charge)
• Webhook: webhook_coinbase (handles payment events)
• Database: crypto_payments table tracks blockchain confirmations

Potential CDP Upgrades:

1. Embedded Wallets - Give customers crypto wallets for loyalty/rewards
2. Server Wallets v2 - Automate chef/driver payouts in USDC (faster, cheaper than bank transfers)
3. Onramp API - Apple Pay → crypto onboarding (25% conversion increase per Moonshot case study)
4. Policy Engine - Governance for treasury operations (spending limits, multi-sig)

References

• CDP Docs: https://docs.cdp.coinbase.com/
• API Reference: https://docs.cdp.coinbase.com/api-reference/v2/introduction
• SDKs: https://docs.cdp.coinbase.com/sdks
• Demo Apps: https://docs.cdp.coinbase.com/get-started/demo-apps/explore
• Changelog: https://docs.cdp.coinbase.com/get-started/changelog
• Dev Portal: https://portal.cdp.coinbase.com/
• Commerce Docs: https://docs.cloud.coinbase.com/commerce/docs