Coinbase Opens DeFi Fund
San Francisco - The US exchange and fiat-onramp Coinbase announced the creation of a fund to invest in Decentralized Finance (DeFi). Specifically Compound and dYdX will be granted liquidity in the form of Coinbase’s stablecoin, USDC, in order to increase their respective lending pools. The goal is to decrease lending interest rates by increasing the liquidity pool, which will encourage clients to borrow.
Currently Dai is the most popular crypto lending program, which requires converting to/from Ethereum. With a more straightforward process Coinbase is banking on USDC becoming a major contributor to the lending ecosystem.