Coinbase is ramping up its efforts to support the growth of decentralized finance (DeFi) protocols on the Ethereum network.
After investing in money market protocol Compound and open trading platform dYdX, the digital currency exchange says it is now giving additional funding to Uniswap and PoolTogether, two popular apps on the Ethereum network.
Uniswap is an automated exchange that facilitates swapping between Ether (ETH) and ERC-20 tokens. In a statement released on April 2nd, Coinbase says the platform is becoming one of the most liquid exchanges on Ethereum.
“Their constant market maker model makes it easy to launch a liquid exchange for any token, and is increasingly becoming critical infrastructure for tokens and applications that need liquidity.”
PoolTogether, which bills itself as a no-loss savings game that’s powered by blockchain technology, allows users to buy tickets using stablecoins DAI or USDC that can earn interest through Compound. One ticket holder is then randomly chosen each week to win all of the accrued interest from the pool, while those who did not win keep their initial funds.
Coinbase says its USDC Bootstrap Fund, launched last year to support developers building DeFi protocols, is investing $1.1 million in USDC stablecoins into Uniswap’s liquidity pool. It is also providing $100,000 worth of USDC to PoolTogether in order to increase rewards for the stablecoins’ depositors.