Leading US-based cryptocurrency exchange and wallet provider, Coinbase has announced that it has made a direct investment up to the tune of $1.1 million in two different Decentralized Finance (DeFi) products – Uniswap and PoolTogether.
According to the official announcement today, the funding was made via the exchange’s stablecoin, USD Coin (USDC) and it is part of Coinbase efforts to increase the projects’ chances of competing against other existing financial products.
The Uniswap platform is an automated market maker built on the Ethereum blockchain that is currently simplifying exchanges’ effort in launching ERC-20 tokens, and it helps provide liquidity for tokens that are in need.
Coinbase noted that so far, Uniswap has grown from having $0 to $31 million in liquidity, and has helped several exchanges develop over 880 ERC-20 tokens.
PoolTogether, on the other hand, is a Compound lottery gaming platform where users deposit either DAI or USDC to get lottery tickets and also earn interest.
On specific dates, users who purchase the lottery tickets are randomly selected, and a winner is chosen to win the interests of all participants within a given period.
As per the announcement, Coinbase stated that the PoolTogether platform had awarded $19,000 worth of prizes to participants, while adding that it will be contributing $100,000 in USDC, to increase the daily prizes to be won by USDC depositors.
Coinbase USDC Bootstrap Fund
It can be recalled that in September last year, Coinbase in its quest to boost the growth and adoption of Decentralized Finance (DeFi) products and the USD coin (USDC) announced the launch of a USDC Bootstrap Fund. At the time of the launch, an initial funding of $2 million was made toward the project by the exchange.
Coinbase noted that the funding would be used to develop various smart contract protocols, providing necessary liquidity for entrepreneurs, as well as supporting developers in growing their protocols.
Meanwhile, Coinbase launched an initiative late last month that would enable Coinbase Wallet users to earn interest by lending out their coins on decentralized finance (DeFi) applications.