Coinbase invests $1.1 Million in Uniswap and Pool Together

By Tejas19 | Crypto_ed | 5 Apr 2020


The two most popular DeFi applications on the Ethereum blockchain Uniswap and PoolTogether are being funded $1.1 Million USDC by Coinbase. USDC is a stable coin that is pegged to the US Dollar and this stable coin was developed by Coinbase with the partnership of Circle. Coinbase have allotcated certain funds which they use to fund other protocols in the DeFi space. 

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Last year September 2019, $2.2 Million USDC was used by Coinbase from the bootstrap funds to invest in the DeFi protocols dYdX and Compound. By injecting USDC coins into the DeFi protocols the Dapps have more liquidity and Users can also gain interests or lend out their USDC coins to the protocols.

UNISWAP:

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Uniswap is a protocol where users can swap a given ERC-20 token to another ERC-20 token. Now with coinbase injecting $1 Million USDC into the protocol, the liquidity is increased drastically.  Users can now swap USDC/ETH. The Uniswap pool will function better and smoothly if the liquidity is big enough.

POOL TOGETHER:

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PoolTogether is a no lose lottery protocol. You pay 1$ to buy one ticket and many others also buy tickets and interest is generated over the period of one week and one lucky winner gets all the interest. The participants get back their 1$ used for purchasing the ticket. The user is not restricted to buying only 1 ticket he/she can buy many tickets and increase the odds of winning the lottery. Coinbase have provided $100,000 USDC into the PoolTogether protocol and hence the participants can now win higher rewards because the interest generated on a large sum of money is obviously high!

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Tejas19
Tejas19

A student pursuing Masters in Germany. Recently got interested in crypto and blockchain technologies.


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