Coinbase is bringing back its Stablecoin Bootstrap Fund to boost activity in decentralized finance markets.
- The fund deploys USDC and EURC to DeFi platforms.
- Initial testing starts on Aave, Morpho, Kamino, and Jupiter.
- The project aims to support both new and mature DeFi protocols.
Coinbase Relaunches Its Stablecoin Program
Coinbase has restarted its Stablecoin Bootstrap Fund. The project helps put stablecoins like USDC and EURC into DeFi platforms. These platforms rely on liquidity to function, and Coinbase wants to help them grow.
The renewed effort will be overseen by Coinbase Asset Management. It will first add funds to platforms like Aave, Morpho, Kamino, and Jupiter.
Why This Matters for DeFi
DeFi, or decentralized finance, allows users to trade, lend, and earn interest without traditional banks. To work well, DeFi needs lots of stablecoins in its systems. These tokens keep their value steady, making it easier for users to interact with apps safely.
The Bootstrap Fund first launched in 2019. It helped early DeFi projects like Uniswap, Compound, and dYdX. These apps became very popular, and USDC became the top stablecoin used in DeFi as a result.
Focus on Growth and Stability
This time, Coinbase is dividing money between old and new apps. The company has not said how much money it is using, but confirmed that it is testing small amounts before expanding further. The fund aims to offer stable returns and improve market access for users.
DeFi is growing fast, especially as rules in the U.S. become more clear. According to DefiLlama, DeFi holds almost $200 billion in assets. That’s nearly double since April, but still below the 2021 peak.
By supporting key DeFi platforms, Coinbase hopes to make markets stronger and more efficient. As more stablecoins enter these systems, it may become easier for users to earn yield and trade with confidence.
Source: coindesk.com
