Coinbase Invests Over $1 Million into DeFi Sites
One of the major reasons behind the rapid development of the cryptocurrency space is the presence of crypto exchanges, and Coinbase is one of the most influential exchanges in the world. On Wednesday, the company further strengthened its bets in the decentralized finance (DeFi) applications space by announcing a fresh round of investments.
Coinbase announced that it has decided to invest a total of $1.1 million in two separate projects through its USDC Bootstrap Fund. This is a major development for the DeFi space and for the crypto space at large. It remains to be seen how the blockchain industry reacts to it.
The USDC Bootstrap Fund was launched by Coinbase in collaboration with Circle in 2019 and is part of the Centre Consortium. The fund is looking to boost development in the DeFi sector and is investing in projects denominated in stablecoins backed by the United States Dollar. The money is donated directly to the DeFi protocols.
However, that is not all. The crypto exchange has already committed as much as $100,000 to the USDC with regards to the daily prize that is awarded by PoolTogether. The first project is Uniswap, which is an Ethereum-powered decentralized exchange that runs without the aid of an actual order book.
The Uniswap exchange has also announced that in the second quarter of 2020, it is going to launch its second version, which will allow users to complete token to token swaps directly. The other project is PoolTogether and is regarded as a ‘lossless lottery’ by those in the industry.
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The decision to invest in these projects reflects the fact that Coinbase is determined to build a true crypto ecosystem that can thrive in the long-term. To that end, it is making certain investments, and many crypto watchers will be following the company’s next moves quite keenly.
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