Coinbase has launched its second Stablecoin Bootstrap Fund to provide additional liquidity to the Defi Ecosystem through USDC.
According to Announcement on August 12th,The initiative will target protocols across multiple blockchains starting with Aave, Morpho, Kamino, and Jupiter. Coinbase also invited a protocol to reach out to exchanges in search of liquidity.
The fund represents Coinbase’s new commitment to accelerating stable adoption across mature and emerging protocols after the original 2019 Bootstrap Fund.
Growth time
Coinbase’s first Bootstrap Fund helped establish the USDC market across blue chip Defi protocols such as UNISWAP, Compounds, and DYDX in the early stages of Defi development.
In particular, USDC has become Defi’s leading Stablecoin, with an estimated total lock (TVL) of $8.9 billion, $2.7 trillion in annual chain-on-chain transaction volume.
A spokesman for Coinbase explained in the memo that timing reflects current market conditions and growth opportunities.
“We’re changing in Onchain Financial Services adoption. We saw how successful the initial fund has been in driving the early wave of Onchain Stablecoin liquidity, and saw the opportunity to leverage Coinbase resources to further accelerate the interest and recruitment we see today.”
Record breaking is $40.7 billion With an active defi loan It represents one factor that motivates the launch of a fund.
However, the spokesman said the crypto-backed loans are “a prime example of this adoption and continued growth, but not the only reason.”
The fund is trying to ensure deeper liquidity of stubcoin across the on-chain ecosystem, allowing users to access reliable interest rates on both established and emerging protocols.
Scaling over time
Coinbase plans to expand the fund over time and distribute liquidity to additional protocols and stablecoins beyond the first four recipients. The launch may have a direct and positive impact on USDC use in DEFI.
Adding liquidity to the largest decentralized money market could reduce USDC borrowing rates at these venues, and chain leverage could make Stablecoin even more interesting. tHis funds can also bring more money in chains.
Finally, the company expressed particular interest in partnership with pre-launch teams and projects that are trying to drive ridiculous growth from its establishment.
The spokesman concluded:
“We believe that now is the time for construction, and the Stablecoin Bootstrap Fund is here to inject fluidity into projects that can impact ecosystems regardless of size.”
