Nearly six years after its original launch, Coinbase has resurrected the Stablecoin Bootstrap Fund to increase USDC liquidity over the most critical decentralized finance protocols.
The fund will assist in injecting stablecoin into popular and new protocols to enhance borrowing terms and trade performance.
Liquidity Support for Leading Protocols
The new program, which Coinbase Asset Management is managing, will start by extending liquidity to Aave, Morpho, Kamino, and Jupiter. Aave and Morpho are Ethereum-based and offer lending and borrowing services. Kamino and Jupiter are built on Solana and are dedicated to providing liquidity and aggregating trades. The fund will issue USDC and EURC in the name of Circle, which more stablecoins will follow in the future.
According to the company, the aim will be to facilitate protocols by sending stable assets into their pools of liquidity. This will enhance user experience, minimize slippage in trading, and stabilize the borrowing rates.
Built on Proven Results from 2019
The new venture is based on the original Stablecoin Bootstrap Fund launched in 2019. That grant gave Compound and dYdX each $1 million to reduce borrowing rates and jumpstart early use. Such money came not as grants but as working capital contributed to protocol pools. The approach worked to increase confidence in USDC and enhance access to the latter in the chain.
Since then, Coinbase has added new platforms such as Uniswap and PoolTogether. These movements helped establish USDC as an essential tool in DeFi transactions and protocol processing.
Similarly, Coinbase aided a $1.1 million liquidity operation with Binance by continuing to ingrain USDC usage into everyday transactions. This allowed USDC to become a stable, multichain asset integrated into thousands of smart contracts.
Focus on New and Smaller Projects
Coinbase declared that it will support not just this firm’s name but also lesser-known protocols that are unable to acquire early liquidity. The company made a move to inject stablecoins into these pools to support newer projects as they begin to develop and support more predictable user experiences.
The platform pointed out that protocols will be made on a protocol-by-protocol basis. The fund will be token-neutral, giving flexibility regarding how to deploy liquidity on various networks and projects.
Coinbase hopes that this project will enable DeFi users to have stable and effective finance tools, with more individuals switching to blockchain.
The post Coinbase Brings Back the Stablecoin Bootstrap Fund to Expand USDC Liquidity first appeared on Coinfea.
