Ex-Coinbase Engineers Launch Nook Crypto Savings App With $2.5M Funding

Three former Coinbase engineers have launched Nook, a crypto savings application that simplifies access to decentralized finance lending protocols, alongside $2.5 million in funding from Coinbase Ventures, Defy.vc, and UDHC, Fortune reported exclusively Wednesday.

The startup, led by CEO and co-founder Joey Isaacson, targets non-crypto-native users by eliminating the complexity typically associated with DeFi lending platforms. According to Isaacson, users must navigate an average of 14 steps to access traditional lending platforms, creating significant barriers for investors unfamiliar with blockchain technology.

Nook addresses this friction by allowing users to sign up with just an email address rather than connecting a crypto wallet. The app launched publicly Wednesday with Moonwell, a 2021-founded platform created by another Coinbase alumnus, as its initial lending partner.

During its pre-launch phase, Nook onboarded users from a waiting list exceeding 50,000 people. These early adopters earned 8% annual returns by lending Bitcoin and other cryptocurrencies through Moonwell's platform. "We can't guarantee it, but that has been the result that users have been seeing," Isaacson told Fortune.

The application operates on Base, Coinbase's Layer 2 blockchain network, and employs overcollateralization mechanisms to mitigate lending risks. Borrowers must deposit more cryptocurrency than they receive in loans, with automatic liquidation triggered if collateral values fall below predetermined thresholds.

Nook enters a competitive landscape that includes Legend, another platform developed by former Compound CEO Jayson Hobby. While Legend provides broad access to multiple DeFi applications, Nook focuses on a more streamlined approach with curated lending partnerships.

The company currently offers free access to users, with Isaacson indicating various revenue models will be considered once the platform builds a substantial user base. The funding will support technology refinement and marketing efforts to expand distribution.

Nook's app is available in the U.S., and includes an additional 5% return boost feature, with plans for broader international rollout in development.

The launch comes as traditional financial institutions increasingly explore yield-generating products that compete with DeFi protocols, though Nook's approach targets users seeking higher returns than conventional bank savings accounts while maintaining simplified user experience standards.