icon
icon
icon
icon
🏷️$300 Off
🏷️$300 Off

News /

Articles /

Coinbase Launches Verified Pools for Secure DeFi Trading

Coin WorldWednesday, Mar 19, 2025 3:42 am ET
2min read

Coinbase has introduced a new liquidity solution called Verified Pools, aimed at enhancing security and transparency in decentralized finance (DeFi) trading. Announced on March 18, 2025, this feature is designed to mitigate counterparty risks within decentralized systems by requiring liquidity providers to verify their identities. This move addresses the longstanding challenge of anonymity in DeFi, which has posed significant security risks to liquidity providers.

To participate in Verified Pools, users must link their Coinbase Wallet, Prime Onchain Wallet, or third-party wallets with Coinbase Verifications credentials. This verification process ensures that all stakeholders are vetted, adding an extra layer of confidence to the system. By doing so, Coinbase aims to create a more secure environment for both institutional and retail traders.

Verified Pools are designed to attract a diverse range of traders by offering non-custodial liquidity pools that prioritize security. Institutions can benefit from concentrated liquidity and controlled access, while retail traders can execute direct trades without intermediaries. This dual focus on security and accessibility is a key aspect of Coinbase's strategy to expand on-chain adoption while maintaining strict compliance and security standards.

The transactions within Verified Pools operate on Base, Coinbase’s layer-2 blockchain, which is designed to enhance transaction speed and lower costs. The platform also integrates sanctions screening and KYC verification, ensuring a safer trading environment for institutional participants. This integration of advanced technologies and compliance measures positions Coinbase as a leader in the DeFi space, offering a trusted way to seamlessly trade onchain.

Technologically, Verified Pools are based on the Uniswap v4 protocol, utilizing “hooks” to enable advanced smart contract functionalities. These hooks allow for customizable trading features that enhance liquidity management. Additionally, Coinbase has partnered with Gauntlet, a risk management firm, to optimize the health and efficiency of the liquidity pools. This collaboration ensures that the pools function well and provide a safe environment for all users.

The feature is currently available in several regions, including the United States, Singapore, the Netherlands, and the British Virgin Islands. Coinbase intends to expand its coverage, add support for more trading pairs, and interact with even more decentralized exchange (DEX) aggregators in the future. This expansion will allow more traders to benefit from transparent onchain liquidity, further solidifying Coinbase's position as a leading platform in the DeFi space.

The launch of Verified Pools comes at a time of increased interest in Coinbase. The industry has been encouraged by recent pro-crypto initiatives, which have created a favorable regulatory environment for the platform. As Coinbase continues to expand its on-chain services, it is establishing itself as an institutionally friendly and secure platform for DeFi trading. This move is part of Coinbase's broader strategy to reinvent security approaches in the DeFi space, ensuring that users can trade with greater confidence and peace of mind.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
lh17422frank
03/19

All thanks to Mrs ELIZABETH TOWLES that helped me achieve my dreams through her trading program,I made over $40,000 in duration of two weeks, she's so amazing. Get to her on 👉.. 𝚆𝙷𝙰𝚃𝚂𝙰𝙿𝙿 +𝟣𝟧𝟨𝟥𝟤𝟩𝟫𝟪𝟦𝟪𝟩

0
Reply
User avatar and name identifying the post author
sniperadjust
03/19
@lh17422frank Cool
0
Reply
User avatar and name identifying the post author
Ok-Razzmatazz-2645
03/19
Verified Pools: Because even in DeFi, sometimes you need a VIP pass to feel safe
0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App