Home Exchanges Coinbase DeFi Sites Receive Over $1 Million USDC From Coinbase

DeFi Sites Receive Over $1 Million USDC From Coinbase

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Coinbase is the gateway for cryptocurrency trading and their recent cash injection into decentralised finance (DeFi). The one million dollars injection to Uniswap and a hundred thousand dollars to PoolTogether boost DeFi sites and give them a competitive edge against other financial products. The move by Coinbase also increases confidence in crypto trading after the market crash due to COVID-19.  However, it is essential to note that deposits are meant to boost the liquidity pools and not invest in the selected DeFi sites.

The cash was made available through the USDC Bootstrap Fund, launched by Coinbase in 2019. Since USDC are dollar-pegged tokens, depositing them into DeFi makes crypto attractive to borrowers and takers. Developing the Bootstrap Fund ensure the crypto supply is sustainable and exchanges can take place anytime.

Uniswap

Uniswap mainly trades in Ethereum and increasing its liquidity levels allows for large volumes of transactions. The one million dollar pump into the Uniswap liquidity pool improves the transactions and prices in the pool. Besides, the decentralised exchange can improve infrastructure and provide direct token-to-token swap.

PoolTogether

While Coinbase injected just $100,000 into the DeFi site, the investment increases lottery rewards for participants. PoolTogether allows users to deposit money into USDC pools, and using the money market protocol compound, generates interest. Since users receive a lottery ticket for every stablecoin deposit into the pool, the winning ticket gets the collective interest from the pool. The draws are held weekly or every month, and increased liquidity of the pool will boost the rewards. Fortunately, depositors never lose their principal deposit and can withdraw their USDC token anytime if they don’t want to participate in the next pool.

The over $1 million deposits from Coinbase provides a significant boost to the DeFi sites after the dramatic drop in prices after the reduced liquidity in the pools.

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