- On Coinbase’s Layer 2 network Base, the DeFi lender Seamless Protocol introduced a loan market tailored to cryptocurrencies.
- The first two tokens supported on the platform are DEGEN and SEAM, which are altcoins based on Base.
On Base, a Layer 2 created by the cryptocurrency exchange Coinbase, the DeFi lending protocol Seamless has opened up a loan market for cryptocurrencies.
The first two tokens to enter the altcoin lending platform are SEAM, the native token of the Seamless Protocol and the first Based-based currency listed on Coinbase, and DEGEN, of Degen Chain, which is awarded to effective Farcaster users.
A fork of the decentralized liquidity protocol Aave v3, the Seamless protocol is a decentralized finance platform built on Base. The new cryptocurrency lending platform enables holders of DEGEN and SEAM to get platform incentives and establishes a supply market for those coins.
Seamless Protocol core developers informed The Block that the emergence of cryptocurrency and meme communities has been a major driver of Base’s recent growth. By providing altcoin loans on Seamless, the hope is that over time, these holders would be able to continue holding while borrowing other DeFi assets like ETH or stablecoins. These projects and community members are searching for additional token utility.
If there is no utility or application, idle capital that is locked up in the form of tokens can be considered capitally inefficient; but, by enabling borrowing, this idle capital can be put to use. The contributors stated that Seamless is thrilled to be the first protocol to provide this service on Base after doing a thorough risk analysis with partners.
In December 2023, Coinbase listed SEAM, the native token of Seamless Protocol.
According to CoinMarketCap, DEGEN had a market capitalization of $465.6 million on April 19 and was valued at $0.33 at 12:46 p.m. ET. DEGEN is an ERC-20 currency that is native to the Layer 3 network Degen Chain. On the web3 social media platform Farcaster, users are rewarded with DEGEN for posting high-quality content.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
