Edge
Chaos Labs & Optimism Foundation: Optimizing USDC Liquidity
Chaos Labs is excited to collaborate with the Optimism Foundation to optimize liquidity incentives and facilitate the migration from bridged USDC.e to native USDC on OP Mainnet.
Embracing the Next Phase of USDC on Optimism
On September 5th, 2023, Circle officially announced native USDC on OP Mainnet. This enabled direct USDC issuance and redemptions from Circle, eliminating the complexities of bridging.
Native USDC on OP Mainnet, issued directly by Circle and backed by US dollars, stands as the definitive version of USDC within the ecosystem, offering developers a reliable and stable base. In contrast, USDC.e is a bridged version of USDC from Ethereum, lacking direct issuance by Circle and compatibility with CCTP, Circle Account and Circle APIs.
USDC.e to USDC Migration Framework
In partnership with the Optimism Foundation, Chaos Labs is proud to spearhead the strategic framework for migrating USDC.e to native USDC on OP Mainnet. The Chaos methodology encompasses a holistic analysis, strategic planning, and a detailed execution roadmap for the migration process. By combining detailed analysis with strategic foresight, Chaos Labs and the Optimism Foundation are committed to facilitating a smooth transition to native USDC, enhancing efficiency and utility on OP Mainnet.
Guiding Principles of the USDC Migration Framework
- Risk Management: Safeguard liquidity levels for USDC and USDC.e to meet DeFi demands during the transition.
- OP Token Integration: Maximize the efficiency and utility of OP token incentives within the migration framework.
- Enhancement of Native USDC: Aim to establish native USDC as the superior choice through improved liquidity, reduced slippage, and expanded DeFi applications.
- Customized Strategies: Implement a tailored approach, addressing the unique needs of each segment and protocol.
- Ecosystem Expansion: Focus on increasing the overall stablecoin supply within OP Mainnet
Looking Ahead
In the coming weeks, we are set to finalize and share further insights into our comprehensive migration strategy and analysis. This phase marks the initiation of our plan's execution, where we will actively engage with various protocols functioning within the OP Mainnet. We will focus on discussing and refining the implementation specifics of our incentive strategy and collaborative efforts. This crucial dialogue aims to fine-tune and guarantee a seamless and effective migration process, ensuring that every step is optimized for success.
More About Optimism
Optimism OP Mainnet is an EVM equivalent Layer 2 blockchain connected to Ethereum. The OP Stack is the standardized, shared, and open-source development stack that makes it easy to spin up your own production-ready Layer 2 blockchain, just like OP Mainnet.