DIP050 - Add support to the native version of USDC on dForce

Summary

dForce DAO proposes to add the native version of USDC to dForce across all L1/L2 chains supported.

Background

In April 2023, Circle announced the launch of Cross-Chain Transfer Protocol (CCTP) to enable the permissionless transfer of USDC natively across supported blockchains.

With USDC being an off-chain collateralized asset, CCTP gives USDC the unique ability to be “teleported” across chains, where USDC is effectively destroyed on the source chain and recreated 1:1 on the destination chain – the US dollar reserves remain intact.

Other bridge projects and interoperability-focused protocols, such as Celer Network, Li.Fi, Wormhole, O3 Labs, Wanchain and Router Protocol, have already integrated CCTP into their systems to allow USDC transfers via their platforms.

Benefits of native USDC include:

• Fully reserved and always redeemable 1:1 for US dollars
• Enables institutional on/off-ramps via Circle and other partners
• Support by CCTP to eliminate bridge withdrawal delays
• Upgradeable smart contract for future enhancements by Circle

Motivation

We are proposing to onboard the native version of USDC to dForce with the same parameters to its bridged version across all networks available (Arbitrum, Avalanche, Ethereum at the time of writing).

The current interchain user experience is clunky and complex with users needing to use bridges just to move value. The launch of CCTP will help simplify user experience by moving the complexity of blockchain interoperability and value transfer to the application-level instead of user-level.

By integrating with CCTP, it can help dForce extend our reach to a wider group of audience and better satisfy users’ needs and wants.

Specification

The native version of USDC will carry the same parameters to its bridged version across all networks dForce supports. Please visit our docs for details.