Coinbase launched a second Bootstrap Fund Stablecoin to provide additional liquidity to the DEFI ecosystem via USDC.
According to a August 12 announcementThe initiative will target protocols on several blockchains, starting with Aave, Morpho, Kamino and Jupiter. Coinbase also invited protocols looking for liquidity to reach exchange.
The fund represents the renewed commitment of Coinbase to accelerate the adoption of stablescoin through mature and emerging protocols after its 2019 Bootstrap fund.
Growth time
Coinbase’s first bootstrap fund has helped establish markets for USDC through the first -rate DEFI protocols such as Uniswap, Compound and Dydx during the first stages of Defi development.
In particular, the USDC has become the main stable of DEFI with approximately 8.9 billion dollars of total locked value (TVL) and 2.7 billions of dollars of annual chain transactions.
A spokesperson for Coinbase explained in a note that the calendar reflects the current market conditions and growth opportunities:
“We are at an inflection in the adoption of Onchain’s financial services. We have seen how the first fund managed to help stimulate the initial wave of stable onchain liquidity, and have seen the opportunity to take advantage of Coinbase resources to further accelerate the interest and the adoption that we see today. “
The 40.7 billion dollars record In active deffi loans represents a motivating factor for the launch of the fund.
However, the spokesman noted that the loans supported by Crypto constitute “an excellent example of this adoption and this continuous growth, but not the only reason” for the initiative.
The fund aims to guarantee deeper liquidity for the stage through the chain ecosystem, allowing users to access reliable prices on established and emerging protocols.
Scaling in time
Coinbase plans to scale the fund over time and to distribute liquidity on additional protocols and stable stages beyond the four initial recipients. The launch can have a direct and positive impact on the use of the USDC in DEFI.
The addition of more liquidity to the largest decentralized monetary markets will reduce the loan rate for the USDC on these sites, which makes stablecoin more interesting for the lever on chain. TThe fund could also bring more chain money.
Finally, the company expressed its particular interest in collaborating with pre-launched teams or projects seeking to stimulate the growth of Stablescoin since creation.
The spokesperson concluded:
“We believe that the moment is the time to build, and the Bootstrap Fund Stablecoin is there to inject liquidity in projects that can have an impact on the ecosystem, whatever the size.”
