Base, Coinbase’s new layer-2 network, is set to support four major innovations according to the company. These include the creation of an inflation-pegged “flatcoin,” an on-chain reputation system, an on-chain limit order book (LOB) exchange, and tools designed to enhance the security of the decentralized finance (DeFi) ecosystem. Coinbase believes that the introduction of “flatcoins” that track inflation could be beneficial for users seeking stability in purchasing power and protection against economic uncertainty that can be brought about by traditional financial systems.
The company also encourages developers to explore on-chain reputation systems that facilitate trust between users, LOB exchanges that provide normal operations without counterparty risk through self-custody, and tools that offer protection against vulnerabilities in smart contract code and protocol logic errors, thereby ensuring a safer DeFi ecosystem. To aid in the development of these projects, Coinbase has launched the Base Ecosystem Fund to provide funding for early-stage projects that are building on Base.