Since public chain users are accustomed to participating in various DeFi protocols through stablecoins, including on-chain token exchange, liquidity provision, borrowing and lending capital pools, as well as on-chain perpetual contracts and options, etc.; among them, $USDT and $USDC Occupying the largest share, the entry of these two stablecoins is crucial to the development of the public chain ecosystem.
Jeremy D. Allaire, co-founder of stablecoin issuer Circle, announced in TOKEN2049 yesterday that Native $USDC will be issued on the Layer1 public chain Sui network and integrate $USDC’s dedicated cross-chain transmission protocol "Circle CCTP (Cross- Chain Transfer Protocol), allowing users to cross-chain transfer native $USDC from other public chain networks to the Sui network. This move will not only inject more liquidity into the Sui ecosystem, but also greatly improve the flexibility of Sui's cross-chain interoperability.
Source: @EvanWeb3 Evan Cheng, founder of Sui development team Mysten Labs, uploaded news of cooperation with Circle on social platforms
Did the Sui chain originally have $USDC?
In fact, Sui already has $USDT and $USDC running on the chain, but both are Wormhole's ERC-20 cross-chain encapsulated versions $wUSDT and $wUSDC; and Wormhole's asset transfer method is Lock & Mint ), so there is a systemic risk of cross-chain bridge assets being hacked, which is not conducive to the ecological development of DeFi in the long run.
It is worth noting that $wUSDC is the stablecoin with the highest share of 71% on the Sui chain, and the current market value at the time of writing is US$259 million; with the official authorization of Circle, $wUSDC on the Sui chain will gradually transition to native $USDC will further optimize the health of its DeFi ecology, which is expected to attract institutional investors to issue $USDC through Sui, thus consolidating Sui's leading position in the Monolithic high-performance public chain track.
What are the benefits to users and developers of native $USDC integration?
According to the official press release, Sui will be the first “Move smart contract platform” to support native $USDC and Circle CCTP. The integration of native $USDC can provide Sui participants with the following benefits👇
Being fully reserved and well regulated, $USDC is redeemable for USD at any time 1:1
Eligible institutional clients can deposit and withdraw fiat currencies through Circle Mint and other channels
Native $USDC can be easily integrated into DApps
CCTP allows users to securely transfer native $USDC across 72 routes across nine public blockchain networks
CCTP allows developers to create DApps that promote interaction between MoveVM, EVM, SVM and Cosmos ecological chains to achieve a frictionless experience of cross-chain exchange, purchase and fund rebalancing.
How to use $USDC with Sui?
Non-custodial wallet users can add $USDC to the Sui network via the following methods 👇
Circle Native $USDC
Token name: USDC
Token symbol: USDC
Token contract address: 0xdba34672e30cb065b1f93e3ab55318768fd6fef66c15942c9f7cb846e2f900e7::usdc::USDC
Wormhole Bridged $wUSDC
Token name: Bridged USDC (Wormhole)
Token symbol: wUSDC
Token contract address: 0x5d4b302506645c37ff133b98c4b50a5ae14841659738d6d733d59d0d217a93bf::coin::COIN
What is the current status of Sui's ecology?
As a public chain network, Sui developers can build various applications including DeFi, NFT, games, DePIN and RWA. At the time of writing, its total locked-up value is US$727 million, ranking the tenth largest DeFi public chain. According to DefiLlama, in addition to Wormhole's $wUSDC ($259 million) and wUSDT ($83.12 million), its stablecoin distribution also includes the CDP stablecoin $BUCK ($8.29 million) minted by Bucket Protocol and Ondo Finance's treasury bond income type. Stablecoin $USDY ($8.23 million), $AUSD ($2.2 million) issued in cooperation with stablecoin provider Agora.
Source: DefiLlama Sui Stablecoin Current Situation
Current status of stablecoin integration on Move public chain
One of Sui's main competitors, Aptos, a Monolithic Layer1 public chain based on the Move smart contract language, cooperated with Tether, another stablecoin issuer, last month (8/20) to integrate native $USDT into the Aptos network. Previously, like Aptos and Sui, stablecoin liquidity was infused by Wormhole. Now these high-performance public chains have introduced safer and redeemable liquidity sources into the stablecoin ecosystem. This series of initiatives will further enhance their public performance. Competitiveness in the chain sector.
Source: DefiLlama Aptos Stablecoin Current Situation
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
