TL;DR

Coinbase is relaunching the Stablecoin Bootstrap Fund; CBAM will deploy USDC and EURC on Aave, Morpho, Kamino, and Jupiter to increase liquidity.
The program resumes the 2019 initiative that seeded initial liquidity on Uniswap, Compound, and dYdX; USDC holds about $8.9 billion in TVL and nearly $2.7 trillion in annual volume.
The allocations aim to stabilize Aave’s pools, optimize P2P lending on Morpho, and strengthen EURC pairs on Kamino and Jupiter.

Coinbase is relaunching the Stablecoin Bootstrap Fund to boost stablecoin liquidity in DeFi. Coinbase Asset Management (CBAM) will manage the fund and begin placements on Aave, Morpho, Kamino, and Jupiter. Initial allocations will include USDC and EURC, aiming to ensure smoother operations and more stable lending conditions on those protocols.

The program picks up where it left off in 2019, when Coinbase provided initial liquidity for USDC in pools on Uniswap, Compound, and dYdX. That early support helped USDC gain traction in onchain markets. Today, USDC holds roughly $8.9 billion in total value locked and records an annual volume close to $2.7 trillion across multiple blockchains.

Interventions on Aave focus on reinforcing loan pool stability and maintaining competitive rates for borrowers and lenders. On Morpho, capital aims to improve peer-to-peer market efficiency by reducing slippage and optimizing the balance between passive and active liquidity. Kamino and Jupiter will receive targeted support to strengthen EURC pairs and enhance currency conversions, enabling euro-denominated operations within the onchain market.

Coinbase Will Implement Placements Gradually

Coinbase will implement placements gradually. It will evaluate each protocol’s performance before increasing investments. The company has not disclosed the fund’s total size or detailed deployment amounts. This approach prevents saturating any single market and adjusts exposure based on real liquidity demand.

The deployment of EURC responds to growing demand for alternatives to the US dollar. By placing EURC in pools and aggregators, Coinbase seeks to offer users and projects euro settlement options and simplify cross-border flows requiring currency diversification.

This relaunch follows the recovery of the DeFi sector. Total assets across decentralized protocols hover around $200 billion, growing after months of reactivation but still below the 2021 peak. With targeted liquidity injections and measured distribution, Coinbase aims to improve market depth and operating conditions for retail and institutional users across multiple onchain networks.

---

Filed under: News - @ August 12, 2025 7:28 pm