Coinbase launched a second Stablecoin Bootstrap fund to offer extra liquidity for the Defi -Ecosystem via USDC.
By one August 12 AnnouncementThe initiative will focus on protocols on several block chains, starting with Aave, Morpho, Kamino and Jupiter. Coinbase also invited protocols that were looking for liquidity to reach the exchange.
The fund represents the renewed dedication of Coinbase to speed up the acceptance of the Stablecoin in adult and emerging protocols after the original Bootstrap Fund of 2019.
Time for growth
The first Coinbase bootstrap fund helped to set up market places for USDC over Blue-Chip Defi protocols such as Uniswap, Compound and Dydx during the early stages of Defi development.
In particular, USDC has become the leading Stablecoin in Defi with an estimated $ 8.9 billion in total value locked (TVL) and $ 2.7 trillion of annual transaction volume on the chain.
A Coinbase spokesperson explained in a comment that the timing reflects current market conditions and growth opportunities:
“We are a bending in the approval of Onchain’s financial services. We saw how successful the first fund was to help stimulate the first wave of the liquidity of Onchain Stablecoin and saw the opportunity to use the means of Coinbase to further accelerate the interest and adoption that we see today.”
The record -breaking $ 40.7 billion In active Defi -Loingen Represents one factor that motivates the launch of the fund.
However, the spokesperson noted that crypto -supported loans “form a good example of this acceptance and continuous growth, but not the only reason” for the initiative.
The fund is intended to guarantee a deeper liquidity for stablecoins in the chain’s ecosystem, giving users access to reliable rates for both established and emerging protocols.
Scales over time
Coinbase plans to scale the fund over time and distribute the liquidity between extra protocols and stablecoins outside the first four recipients. The launch can have a direct and positive effect on USDC use in Defi.
Adding more liquidity to the largest decentralized money markets will reduce the loan interest for USDC at those locations, making the Stablecoin more interesting for leverage on the chain. THe Fund could also bring more money to the chain.
Finally, the company showed a special interest in working with pre-launch teams or projects that wanted to stimulate the growth of the Stablecoin from the start.
The spokesperson concluded:
“We believe that it is now time to build, and the Stablecoin Bootstrap Fund is here to inject liquidity into projects that can influence the ecosystem, regardless of the size.”
