#Coinbase Relaunches Stablecoin Bootstrap Fund to Boost DeFi Liquidity After Six-Year Gap
Coinbase has officially launched a second Stablecoin Bootstrap Fund, marking its return to a liquidity-boosting initiative that first debuted in 2019. The move aims to increase stablecoin liquidity across decentralized finance (DeFi) protocols and accelerate the adoption of USDC and #EURC within the onchain financial ecosystem.
This renewed effort comes nearly six years after Coinbase’s original Bootstrap Fund, which played a key role in establishing USDC as a core stablecoin in #DeFi . The new fund will place initial liquidity in Aave (AAVE), Morpho (MORPHO), Kamino (KMNO), and Jupiter (JUP) — all of which saw significant price gains following the announcement.
Managed by Coinbase Asset Management
The liquidity program will be operated by Coinbase Asset Management and is designed to ensure that DeFi protocols have reliable access to stablecoin liquidity at competitive rates.
“It means deploying capital in onchain protocols to ensure there is sufficient liquidity for their unique use cases — for example, liquidity in a lending protocol for users to borrow from,” — Shan Aggarwal, Chief Business Officer at Coinbase, told The Block.
While Coinbase has not disclosed the size of the fund, Aggarwal confirmed it will initially focus on Circle’s USDC and EURC stablecoins, with the possibility of expanding to other stablecoins in the future.
Reviving a Proven Model from 2019
The original Stablecoin Bootstrap Fund was launched in 2019 to support the early growth of DeFi. Initial deployments included:
$1 million each to lending platform Compound and decentralized exchange dYdX.
Later, in 2020, Coinbase expanded funding to Uniswap and PoolTogether with an additional $1.1 million.
These early investments helped cement USDC’s role as a trusted and widely used stablecoin in DeFi ecosystems. Protocols seeded by the fund became cornerstones of the DeFi boom, facilitating billions in trading and lending volume.
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