Circle Provides Guide for Migrating Bridged to Native USDC on Sui Mainnet
Iris Coleman Oct 09, 2024 04:45
Circle has released a comprehensive guide detailing the migration process from bridged USDC to native USDC on the Sui Mainnet, emphasizing best practices and benefits.
Circle has unveiled a detailed guide to assist developers and users in migrating from bridged USDC to native USDC on the Sui Mainnet. The guide aims to clarify the differences between the two forms of USDC and provide best practices for a smooth transition, according to Circle.
Understanding Bridged and Native USDC
Bridged USDC is generated when USDC is locked in a smart contract on its origin blockchain, and a synthetic version is minted on another blockchain through a third-party bridge application. On the Sui Mainnet, bridged USDC is referred to as USDC.e, a version that originates from Ethereum. In contrast, native USDC is issued by Circle directly on the Sui Mainnet, backed fully by liquid assets and redeemable 1:1 for US dollars.
Best Practices for Migration
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 top tokens and analytics pages, and emphasizing native USDC in user interfaces as a commonly used token.
Benefits of Using Native USDC
Native USDC offers several advantages over its bridged counterpart. It is fully reserved and always redeemable for US dollars, supported by Circle Mint and its APIs, and facilitates institutional on/off-ramps. Additionally, native USDC is interoperable across multiple blockchain networks via Circle's Cross-Chain Transfer Protocol (CCTP).
Migration Methods
Developers can facilitate the migration from bridged 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 contract addresses match the intended transactions to avoid confusion between native and bridged USDC.
Accessing Native USDC
Developers can access native USDC by using DeFi protocols on Sui Mainnet, applying for a Circle Mint account, or utilizing a CCTP-enabled bridge app to transfer USDC from other blockchains to Sui Mainnet. Protocols like Suilend and Navi Protocol support swapping mechanisms for this purpose.
For further guidelines on USDC branding, Circle provides resources on their pressroom page.
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