Coinbase announced the launch of Verified Pools, a set of liquidity pools available to customers verified by the firm. The feature is available to US, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands users.
Coinbase’s Verified Pools are available to institutional and retail traders and offer KYC-verified liquidity pools to maintain the company’s position regarding the openness and efficiency of on-chain markets.
Safer Way for Retail and Institutional Clients to Engage with DeFi
Cryptocurrency exchange Coinbase launched KYC-Verified Pools, which it claims reduces counterparty risk for decentralized finance (DeFi) retail and institutional participants. In a blog post announcing the launch of Verified Pools, the exchange markets the service as a “trusted and seamless way to access liquidity pools” for “both retail and institutional participants in eligible locations.” The exchange highlights the launch of Verified Pools as the next step in the exchange’s “advancing on-chain adoption.”
Seamless Onchain Trading and Swapping
Through Verified Pools, Coinbase introduces “a trusted way to seamlessly trade and swap onchain.” The service is available to institutions seeking liquidity and retail traders looking for an easy way to trade on-chain. According to Coinbase, Verified Pools set a new standard in which compliance efficiency, trust and transparency meet.
Powered by Base, Utilizing the Uniswap v4 Protocol
According to Coinbase, Verified Pools is a “breakthrough” in on-chain liquidity by leveraging the company’s KYC-integrated verification system, Coinbase Verification. Through the seamless integration of identity verification and smart contract transparency, Verified Pools reduces counterparty risks while maintaining the openness and efficiency of on-chain markets.
Verified Pools is powered by Coinbase’s scalable Layer-2 network, Base, and is built on the Uniswap v4 protocol. Coinbase also partnered with Gauntlet, a leading risk modelling and economic optimization provider, which will optimize liquidity pool configurations and maintain overall liquidity pool health to ensure liquidity.
Recognizing that institutional investors, traders, and liquidity providers have long battled to participate in on-chain trading with enhanced security standards, Coinbase delivered Verified Pools to ease their way into it.
Institutions gain numerous benefits with Verified Pools, including:
“Concentrated Liquidity: Liquidity providers can specify a price range for their capital, enhancing capital efficiency and earning potential.
Controlled Access: Coinbase Verifications provide the onchain credentials required for access to Verified Pools liquidity. This ensures that only verified users can supply or interact with liquidity.
Autonomy: Verified Pools are non-custodial which allow you to maintain control and ownership over your assets.”
How to Access Verified Pools
Verified Pools are connected through Coinbase’s “institutional-grade” Prime Onchain Wallet, Coinbase Wallet, or any third-party wallet with Coinbase Verification credentials.
Users must complete Coinbase’s KYC-procedure to join the initiative and address the necessary compliance concerns associated with the DeFi sector.
Verified Pools are available in the US, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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