1.1 Million In USDC Invested Into Uniswap and PoolTogether By Coinbase

Coinbase, one of the world’s heavyweight cryptocurrency exchanges, has recently invested 1.1 million in USDC to the decentralized finance protocols of PoolTogether and Uniswap.

Pushing In 1.1 Million In USDC To Smart Contracts

According to the announcement the San Francisco-based crypto exchange had made, the funding itself comes from its USDC Bootstrap Fund. This Fund was created back in September of last year, with an initial funding clocking in at $2 million. The move itself comes as a bid from the exchange to stimulate the growth of the USDC within the Decentralized Finance (DeFi) industry.

DEX Getting 1,000,000 USDC

With this investment in USDC, Coinbase will integrate $1 million in liquidity to the USDC/ETH pool of Uniswap. Uniswap itself stands as a decentralized exchange based within the Ethereum blockchain and holds no order books. Instead, Uniswap sees the various users’ trade against its reserves. Coinbase itself pointed out that the liquidity of Uniswap had grown to an impressive $31 million in just over a year. Furthermore, the exchange stated that Uniswap holds a pool for more than 880 tokens, now.

Coinbase was quoted as stating that Uniswap’s constant market maker model allows for the launch of a liquid exchange for any token rather quickly. The exchange noted that this in and of itself had become a critical facet for the infrastructure for applications and crypto that need liquidity to continue functioning.

100,000 USDC Put Into Lottery

PoolTogether, in turn, stands as a “no-loss” lottery, allowing its users a chance to win by depositing their funds into a smart contract. PoolTogether’s saving game itself is, in turn, built within the Compound infrastructure, and leverages the interest earned from the deposits made to pay out the lucky random winner. As one would imagine, not losing your original amount of money is enticing, especially if it involves a chance to win it big.

Coinbase invested another 100,000 USDC into the PoolTogether platform, which in and of itself will help the pool give greater rewards to the lucky winners of the lottery. At the end of this announcement, Coinbase went further to encourage developers and smart contracts across the boards to apply for the USDC Bootstrap fund, should they want to integrate USDC into their own systems.

Expanding USDC’s Use

In the past, the USDC Bootstrap Fund had invested into Compound, a money market protocol. Furthermore, it pushed liquidity into dYdX, a margin trading platform. These investments have come only shortly after Coinbase Wallet itself had received an upgrade, integrating DeFi services to its wallet.