Coinbase just dropped a bombshell, namely the Verified Pools, a new service that promises to make DeFi trading safer for both retail and institutional clients.
These aren’t your average liquidity pools, they’re KYC-verified, meaning only users who’ve completed Coinbase’s identity check can join the party.
It’s like a members-only club, but instead of a fancy cocktail bar, you get secure and transparent on-chain trading.
It’s permissioned Fi, not DeFi
Now, you might wonder why this matters. Well, let me tell you, DeFi can be a wild west, full of risks and uncertainties.
But with Verified Pools, Coinbase is trying to tame that beast. By leveraging its Ethereum-centric Layer 2 network, Base, and the Uniswap v4 protocol, these pools offer a more reliable way to trade digital assets.
And with Gauntlet on board for risk management, it’s like having a safety net while you’re swinging from the trapeze.
Self custody: yes, open gates: no
But here’s the thing, these pools are non-custodial, so you keep control over your assets.
It’s like having your cake and eating it too, security and freedom all in one. And the KYC element?
That’s just Coinbase’s way of keeping things legit, especially in regions with strict regulations. You’ve got to complete the verification process to join, which might seem like a hassle, but it’s worth it for the peace of mind.
Now, Coinbase’s timing couldn’t be better. With the SEC dropping its lawsuit and pro-crypto policies on the rise, the exchange is in a sweet spot.
And let’s not forget the plans for 24/7 Bitcoin and Ethereum futures trading, Coinbase is going all in on providing a comprehensive trading experience.
The future of DeFi is… centralization?
So, are Verified Pools the future of DeFi? Maybe. One path, at least, and we will see if it’s a dead end or not.
They certainly offer a more secure and transparent way to trade, which is music to the ears of institutional investors who’ve been hesitant to dive in.
But only time will tell if this is the game-changer Coinbase hopes it will be.
Coinbase is betting big on making DeFi safer and more accessible for everyone, but not totally clear how exactly KYC supporting accessibility. So there are still open questions.
Have you read it yet? China’s AI labeling is about transparency or overreach?
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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