Coinbase is seizing the growing opportunities in the DeFi movement by pumping $1.1 million in their USDC stablecoin in some of the most popular projects. The crypto exchange firm is looking to capitalize on the growing traction in DeFi by making an investment on the Ethereum based Uniswap and PoolTogether. The investment has been made through Coinbase’s USDC Bootsrap Fund that was launched back in September 2019.
The recent investment was made public via an announcement in which Coinbase reiterated their interest in growing the DeFi movement as it bears great promise in the finance sector. In this regards, Coinbase stated that this was their third investment in DeFi after they pumped funds in Compound and dYdX earlier.
The pioneer crypto exchange sees their investment in such projects as a step forward in advancing the decentralisation of finance. The USDC Bootsrap Fund that was started with an initial investment of $2 Million will be the vehicle of choice in driving this new agenda. The firms acknowledged as much stating
With USDC, we hope to provide critical infrastructure that will enable DeFi to grow and increasingly compete with existing financial products.
Coinbase announcement also explained the rationale for their investment in both Uniswap and PoolTogether as they allocated $1million and $100,000 to the projects respectively.
Accordingly, the firm views Uniswap as an emerging exchange that stands out from the rest due to its high liquidity. The project’s constant maker model is a revelation that allows people to build liquidity for tokens of their choice easily. As such, Uniswap is gaining recognition as a key component for tokens and projects seeking to create or boost their liquidity. This is evidenced by the DeFi application growth from nothing to $31 million of liquidity within a little over a year.
PoolTogether is also another attractive project that prompted Coinbase to pump $100,000 into the DeFi platform. The project is basically a savings game created on Compound. It accepts deposits from their users that earn interest over time with winners chosen randomly for payouts. PoolTogether has been similarly impressive so far with over $19,000 paid out in prizes. The project is on an upward growth trajectory that adds to the reasons for Coinbase’s recent investment.
Coinbase is still looking for additional investment options with the company announcing that they are on the lookout for developers, projetcs and teams building innovative products. The firm is willing to work together with those willing to integrate USDC in their projects.
Image courtesy of Pixabay
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