Verified Pools, Coinbase's compliant on-chain liquidity platform, has announced a new incentive for its users: the opportunity to earn up to 2% in USDC rewards. This new reward mechanism is designed to complement existing trading fees already earned by liquidity providers on eligible pools. The update was shared by Brock Miller via a recent tweet, indicating a continued expansion of the platform's offerings.
Launched by Coinbase around March 2025, Verified Pools is built on the Base Layer 2 blockchain and leverages the Uniswap v4 protocol. The platform distinguishes itself by integrating Know Your Customer (KYC) verification and sanctions screening directly on-chain, aiming to provide a secure and transparent environment for both institutional and retail participants in decentralized finance (DeFi). This approach seeks to bridge traditional finance with the burgeoning on-chain market.
The newly introduced 2% USDC reward is offered in addition to the standard trading fees that liquidity providers accrue. This dual incentive structure aims to attract more capital to the platform's liquidity pools, enhancing overall liquidity and efficiency. Such reward programs are common in the DeFi space, where protocols compete to incentivize users to deposit assets and facilitate trading.
The tweet from Brock Miller, which stated, "Update: You can now earn up to 2% in USDC Rewards when you provide liquidity to eligible pools on Verified Pools. This is in addition to trading fees that you already earn as a liquidity provider. More to come soon!" suggests further developments are anticipated for the platform. This move underscores Coinbase's strategy to deepen its presence in the compliant DeFi sector and attract a broader range of participants by offering competitive yield opportunities.