Nook Savings Raises $2.5 Million Seed Round, Aims for 7.6% APY on Base Network

Nook Savings, a new decentralized finance (DeFi) application, has successfully closed a $2.5 million seed funding round with participation from notable investors including Coinbase Ventures, Defy.vc, and UDHC. The platform, founded by three former Coinbase engineers, aims to simplify access to high-yield crypto savings for mainstream users, leveraging the Base network and integrating with protocols like Moonwell DeFi.

The funding underscores a growing trend of "Coinbase mafia" alumni launching new ventures within the crypto ecosystem. Luke Youngblood, a founding contributor at Moonwell, highlighted this phenomenon, stating in a recent social media post, "Congratulations to the entire team! @Coinbase mafia showing up to dominate the next generation of finance." Nook Savings is built on Moonwell, which in turn operates on Base, Coinbase's Layer 2 blockchain.

Nook Savings offers users an opportunity to earn up to 7.6% APY on their idle funds, a rate significantly higher than traditional bank savings accounts. The application converts user deposits into USDC, a stablecoin, and then deploys these funds across selected DeFi lending protocols, including Moonwell, Morpho, and Aave. This process aims to abstract away the complexity typically associated with DeFi, making it accessible to individuals without prior crypto expertise.

Joey Isaacson, CEO and co-founder of Nook, stated that the app is designed to remove the "complexity" and "intimidation" often found in DeFi. The platform prioritizes ease of use, allowing users to deposit or withdraw funds at any time without lockups or penalties, and offers immediate payouts every 16 seconds. Nook also integrates directly with traditional banking systems and Coinbase for seamless on-ramping.

Moonwell DeFi plays a crucial role in the Base ecosystem as a leading lending and borrowing protocol. Its presence on Base, a network designed to enhance Ethereum's scalability and reduce transaction costs, facilitates the high yields Nook aims to provide. The strategic alignment between Nook, Moonwell, and Base reflects a concerted effort by former Coinbase talent to build out an open and integrated financial system. The $2.5 million investment will be utilized to refine Nook’s technology, enhance user experience, and expand its market reach.