- Circle has started a new hot chain utility where users can pay gas rates from Arbitrum and Base to USDC.
- Developers can use Paymaster to simplify gas payments in the application.
- Paymaster charges 10%of the gas fee, but is free until June 30, 2025.
Circle announced that it has launched a new licensed service called Paymaster, and users have announced that they can pay trading fees at USDC for applications in Arbitrum and Base Networks.
Paymaster allows developers to integrate features into applications to provide a smooth process for users.
Introducing Circle Paymaster to allow users to pay gas to USDC. @arbitrum and @base.
There is no juggling token anymore across the blockchain. Simply use USDC for payment, transfer and gas fees.
For more information: https://t.co/Qharlehajc pic.twitter.com/o3mkwlvyjr
-Wind (@circle) January 23, 2025
Paymaster’s operation
According to the blog post of the Circle, the Paymaster maintains the balance of the default coin used in the basic coins (currently Arbitrum and Base) used for gas, accepts USDC payments, and then pays the default gas coin on the backend.
The application then resists the reserve of the unique gas coin.
The availability of the service is limited to an account controlled by the current smart contract, but the Circle plans to expand to an external ownership account (an account owned by a private key) after the Ethereum PECTRA upgrade.
Circle also plans to expand Paymaster to Ethereum Main Net, Polygon and Solana Network. This allows users to pay trading fees in multiple block chains in a single blockchain.