News Coinbase invests in Compound and dYdX to boost DeFi

Coinbase invests in Compound and dYdX to boost DeFi


- Advertisment -

Crypto exchange Coinbase announced today a new fund aimed at encouraging the development of decentralized finance, or “DeFi” protocols. The exchange revealed that it has invested in two DeFi protocols: “Compound,” a protocol for lending and borrowing money and “dYdX,” a protocol for margin trading.

Coinbase’s new initiative dubbed the “USDC Bootstrap Fund,” will invest in DeFi-related projects, by stumping up chunks of its stablecoin USD Coin (USDC). It will also help the project’s teams to assess their protocol’s strategy and usability.

Think of a DeFi protocol like a bank—it’s a place where people can deposit money and earn interest, and a place where people can borrow money, on which they’ll pay interest. Instead of a bank though, made up of people and governed by laws, DeFi protocols are made up of smart contracts and governed by code and the network on which they’re built. 

Based on its talks with DeFi protocol developers, Coinbase says liquidity, or having money available to borrowers, is one of the biggest needs for such businesses. And so, it is hoping its grants will boost the growth of the already burgeoning DeFi ecosystem.

However, concerns have been raised recently over how decentralized these protocols really are—with SpankChain CEO Ameen Soleimani claiming that Compound has a master key to all trades made on its platform. But perhaps this extra funding will help the projects evolve into true decentralized finance.



Please enter your comment!
Please enter your name here

Latest news

What’s the future of decentralized blockchains?

When Bitcoin was new and not valued at anything or just a few cents anyone could join...

My 5 favorite free crypto tools & sites I use daily

So I often get asked by friends, or people visiting my site about new tips for exciting...

Cryptocurrency is The Last Kingdom Where You Can Keep Your Data Private

Data privacy has been a hot topic for quite some time now and particularly after the popularity...

How To Travel With Bitcoin: 9 Travel Companies Accepting Bitcoin

Bitcoin travel is a reality, as several travel companies now accept payments in cryptocurrencies for their services.
- Advertisement -Coinbase invests in Compound and dYdX to boost DeFi

Top 5 Ways To Build a Profitable Business in The Crypto Sector

The crypto industry has grown significantly despite criticism and a skeptical approach from regulators across the globe....

These 8 Cryptocurrencies Will Survive the Next Decade

Cryptocurrency is the future, we all have reasons to believe it. But are people ready...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you