Top US crypto exchange and wallet provider, Coinbase, has announced a strategic investment in two fast-rising DeFi products.
Coinbase disclosed that the investment to the tune of $1.1 million was in its stablecoin USDC. Uniswap and PoolTogether would both be beneficiaries of the investment. The wallet provider made this announcement via its official blog post on April 1. It is using its USDC Bootstrap Fund to make this investment.
To recall, Coinbase launched the Bootstrap Fund last September with an initial fund pool of $2 million. At that time, the exchange disclosed that the funding would be directed at creating smart contracts protocol. It would also be a support system for developers and providing necessary liquidity for business owners.
Among its stated objective, the funding platform aimed to channel awareness for USDC and also as a support base for DeFi projects. The latest initiate is a natural culmination of that objective. It gives USDC a fighting chance in the current highly competitive digital assets space as well as to stimulate the growth of the DeFi products – Uniswap and PoolTogether.
More on Uniswap and PoolTogether
Uniswap is an automatic market maker built on the Ethereum blockchain. Its protocol completely simplifies launching ERC-20 tokens by exchanges. It has developed approximately 880 ERC-20 tokens since its inception. It serves the dual purpose of providing liquidity for tokens as well as for applications requiring liquidity. According to reports, Uniswap has liquidity of roughly $31 million.
PoolTogether is a lottery gaming platform. To get tickets and subsequently earn interest, users need to deposit either DAI or Coinbase USDC. PoolTogether has a unique way of identifying users who will earn interest. On selected dates, one winner, randomly selected users who purchased tickets, receives all interests accrued within that period.
Reports suggest that till now PoolTogether has given out $19,000 worth of prizes to participants. It is also set to contribute $100,000 worth of USDC to a daily prize on the lottery platform.
Coinbase last month launched a unique product designed to help its wallet users earn interest by lending out their coin to DeFi apps. Also, it announced the integration.of the Coinbase Debit Card on Google Pay enabling Android users to make payments with cryptocurrencies.