Coinbase recently announced the launch of a second Stablecoin Bootstrap Fund, aimed at providing additional liquidity for the DeFi ecosystem through USDC. The initiative, as per an Aug. 12 announcement, will initially target protocols across various blockchains, starting with Aave, Morpho, Kamino, and Jupiter. Coinbase has also extended an invitation to protocols in need of liquidity to reach out to the exchange.
This fund signifies Coinbase’s renewed dedication to accelerating stablecoin adoption across both established and emerging protocols, following the success of its original Bootstrap Fund back in 2019. The first fund played a crucial role in establishing marketplaces for USDC across prominent DeFi protocols like Uniswap, Compound, and dYdX during the early stages of DeFi development. Currently, USDC stands as the leading stablecoin in DeFi, boasting an estimated $8.9 billion in total value locked (TVL) and $2.7 trillion in annual on-chain transaction volume.
A Coinbase spokesperson highlighted the timing of the fund’s launch, citing the current market conditions and growth opportunities. With a record-breaking $40.7 billion in active DeFi loans, the fund aims to address the growing demand for liquidity in the DeFi space.
The fund’s objective is to deepen liquidity for stablecoins across the on-chain ecosystem, ensuring users have access to reliable rates across both established and emerging protocols. Over time, Coinbase plans to scale the fund and extend liquidity support to additional protocols and stablecoins beyond the initial four recipients. The launch is expected to have a positive impact on USDC usage in DeFi, potentially lowering borrow rates for the stablecoin on decentralized money markets and attracting more on-chain leverage.
Furthermore, the company expressed interest in collaborating with pre-launch teams or projects looking to drive stablecoin growth from inception. The spokesperson emphasized the fund’s role in injecting liquidity into projects that can make a significant impact on the ecosystem, regardless of their size.
In conclusion, Coinbase’s Stablecoin Bootstrap Fund represents a strategic move to bolster liquidity in the DeFi space, supporting the growth and adoption of stablecoins across various protocols. This initiative aligns with the company’s commitment to driving innovation and development in the decentralized finance sector.
Posted In: Aave, Uniswap, USDC, Coinbase, Adoption, Crypto, DeFi, Exchanges, Featured, Lending, Stablecoins