Coinbase has reduced its Stablecoin Bootstrap Fund and injects capital into the decentralized financial ecosystem to improve liquidity for both USDC and EURC.
Summary
- Coinbase has re -launched its Stablecoin Bootstrap Fund to stimulate USDC and EURC -LIKIZITY.
- First placements focus on Aave, Morpho, Kamino and Jupiter to stabilize lending and trade.
- The move is positioned as a long-term strategy to support Defi growth between chains.
Announced on August 12, the initiative Represents the first important activity of the fund in more than four years and indicates a renewed emphasis on the approval of Stablecoins on chain markets.
Sow liquidity on important Defi platforms
The first allocations go to Aave (AAVE) and Morpho (Morpho) on Ethereum (ETH) to improve stable loan pools and to improve loan efficiency, and to Solana-based Kamino and Jupiter (Jup) to expand token swaps and liquidity routering.
USD Coin (USDC) already supports around $ 8.9 billion in total value and moves around $ 2.7 trillion on networks every year, including Ethereum, Base, Solana (SOL) and SUI (SUI).
By sowing these protocols, Coinbase wants to make trade more efficiently, cut and support both established players and emerging teams. The company has said that the program is open to pre-launch and early phase projects that need a liquidity base to attract users.
Strategic push in the midst of a competitive stabilecoin landscape
The relaunch follows a similar attempt in 2019 that USDC helped when obtaining GRIP in Defi by sowing liquidity on platforms such as Uniswap (Uni), Compound (Comp) and Dydx. This time the fund enters a market where the total Defi TVL is almost $ 160 billion, with Tether (USDT) the dominant stablecoin through market capitalization.
Coinbase sees the possibility to push USDC and EURC into more active use by making them available directly on protocols with a high volume. The company is planning to expand the reach of the fund on the basis of how these early placements perform, with the aim in the longer term to make Stablecoins a trusted settlement tool in multiple block chains.
With Defi volumes that increase and the Stablecoin regulations become clearer in various areas of law, the renewed urge of Coinbase can reach liquidity at a good time.
But whether or not this capital infusion leads to a measurable change in market share, will probably depend on the acceptance of developers, continuous stimuli and how quickly Defi protocols integrate these stablecoins into core markets.