Coinbase Revives Bootstrap Fund to Flood DeFi with Stablecoin Liquidity


Coinbase Revives Bootstrap Fund to Flood DeFi with Stablecoin Liquidity


Coinbase relaunches its Stablecoin Bootstrap Fund to boost DeFi liquidity with USDC on Aave, Morpho, Kamino, and Jupiter.

Coinbase has announced the relaunch of its Stablecoin Bootstrap Fund, aiming to expand liquidity in decentralized finance markets.

The initiative will be managed by Coinbase Asset Management (CBAM) and will begin with liquidity placements on multiple DeFi protocols. Moreover, the company said it is targeting both established and emerging platforms.

Coinbase Relaunches the Stablecoin Bootstrap Fund

The Stablecoin Bootstrap Fund was first introduced in 2019 after the launch of USDC. At that time, it was designed to help new DeFi projects secure liquidity in their early stages. Coinbase provided resources to seed liquidity for USDC across several well-known protocols.

According to Coinbase, the first iteration of the fund supported projects such as Uniswap, Compound, and dYdX. Hence, these allocations helped USDC gain a strong position in decentralized markets.

Additionally, the company says USDC is now the most used stablecoin in DeFi, with billions in total value locked.

Current Focus and Initial Placements

The revived fund will be used to deepen stablecoin liquidity across multiple chains and protocols. Moreover, the first deployments will take place on Aave, Morpho, Kamino, and Jupiter. These placements aim to help users access consistent rates for stablecoin lending and borrowing.

Coinbase says the program will be expanded over time to cover more platforms and stablecoins. Furthermore, it is particularly interested in working with pre-launch projects that require liquidity from the start.

Developers can contact Coinbase to explore collaboration opportunities.

Growth of USDC and Onchain Expansion

USDC has grown to an estimated $8.9 billion in total value locked across DeFi. The stablecoin also processes over $2.7 trillion in annual onchain transactions. Moreover, it operates across multiple blockchains, including Ethereum, Base, Solana, Hyperliquid, Sui, and Aptos.

Coinbase believes that increasing liquidity for USDC will strengthen its role in DeFi. Besides, the company states that stablecoins are key for lending, trading, and payments within blockchain ecosystems. Additionally, the new fund aims to make these functions more accessible.

Commitment to Onchain Finance

Coinbase says the Stablecoin Bootstrap Fund is part of its broader strategy to bring more assets on-chain. By utilizing its own resources, the company aims to promote the adoption of decentralized financial tools.

“We believe the future of finance is onchain,” Coinbase said in its announcement. “We’re committed to building reliable liquidity for stablecoins.” Additionally, the company has invited developers to reach out if they are interested in participating.

The fund is not an investment vehicle under U.S. securities laws. It is provided by Coinbase Global Inc. and not by Coinbase Asset Management. Hence, the use of the term “fund” refers only to the liquidity program’s name.

The post Coinbase Revives Bootstrap Fund to Flood DeFi with Stablecoin Liquidity appeared first on Live Bitcoin News.





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