Iris Coleman
October 9, 2024 04:45
Circle has released a comprehensive guide detailing the migration process from bridged USDC to native USDC on the Sui mainnet, highlighting best practices and benefits.
Circle has released a detailed guide to help developers and users migrate from bridged USDC to native USDC on the Sui mainnet. According to Circle, this guide aims to clarify the differences between the two forms of USDC and provide best practices for a smooth transition.
Understanding Bridges and Native USDC
Bridged USDC is created when USDC is locked in a smart contract on the original blockchain, and a synthetic version is created on another blockchain through a third-party bridge application. On the Sui mainnet, the bridged USDC is called USDC.e and is a version derived from Ethereum. In contrast, native USDC is issued directly by Circle on the Sui mainnet, is fully backed by liquid assets, and is redeemable 1:1 with US dollars.
Migration Best Practices
Circle recommends several best practices for supporting both bridged and native USDC. Key suggestions include making native USDC the default for deposits, withdrawals, and swaps, updating the parent tokens and analysis pages, and highlighting native USDC as a commonly used token in the user interface.
Benefits of using native USDC
Native USDC offers several advantages over bridged USDC. It is fully reserved, always redeemable in USD, is backed by Circle Mint and its API, and facilitates entry/exit for institutions. Native USDC is also interoperable across multiple blockchain networks via Circle’s Cross-Chain Transfer Protocol (CCTP).
How to migrate
Developers can easily migrate from bridges to native USDC by creating swapping mechanisms or liquidity pools within their applications on the Sui mainnet. Alternatively, users can perform swaps on decentralized exchange protocols such as Aftermath Finance, Cetus, FlowX, Deepbook, and Turbos. Developers are advised to ensure that the contract address matches the intended transaction to avoid confusion between native USDC and bridge USDC.
Access native USDC
Developers can access native USDC by using DeFi protocols on Sui Mainnet, applying for a Circle Mint account, or leveraging a CCTP-enabled bridge app to transfer USDC from another blockchain to Sui Mainnet. Protocols such as Suilend and Navi Protocol support swapping mechanisms for this purpose.
For additional guidance on USDC branding, Circle’s press office page provides resources.
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