How Coinbase Verified Pools Enhance Security and Transparency in On-Chain Trading
Coinbase, a major player in the cryptocurrency market, has launched its innovative liquidity solution known as “Coinbase Verified Pools” aimed at improving on-chain trading security for both institutional and retail users. As decentralized finance (DeFi) continues to reshape the way assets are traded, one of the key challenges remains the anonymity of liquidity providers, which can lead to potential risks. Coinbase’s Verified Pools solve this issue by combining identity verification with liquidity pools, offering a trusted environment for traders.
Users must link their Coinbase wallet, Prime Onchain wallet, or compatible third-party wallets with Coinbase’s Verifications credentials in order to participate in Verified Pools. This gives on-chain transactions an additional degree of security and confidence by guaranteeing that all liquidity sources are validated. It is anticipated that this action will lower counterparty risks while preserving the platform’s decentralised structure.
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Verified Pools, which is based on the Uniswap v4 protocol, adds “hooks” that improve smart contract functionality, giving trading features greater adaptability and customisation. Furthermore, Coinbase and Gauntlet have teamed up to maximise the well-being of these liquidity pools, guaranteeing traders stable market conditions.
Verified Pool transactions happen over Coinbase’s Layer-2 network, Base, which speeds processing and drastically reduces expenses. It is anticipated that this functionality will be especially helpful for traders who want to deal with low fees while maintaining security and transparency.
Verified Pools are already accessible in the US, Singapore, and the Netherlands, and more nations will probably be added soon. For customers who appreciate both security and decentralisation, the launch of Coinbase Verified Pools is a major step towards making DeFi safer and more accessible.
