Moonwell has launched a new feature called “USDC Anywhere,” designed to facilitate the cross-chain lending and borrowing of the USD Coin stablecoin directly across various Ethereum networks.
Following the launch on Feb. 14, a Moonwell blog post revealed that USDC Anywhere untilized Circle’s Cross-Chain Transfer Protocol (CCTP) and Socket technology. The new feature was designed to simplify the DeFi transaction process by enabling efficient and secure USDC transfers.
Today marks the launch of USDC Anywhere, a pioneering feature that enables everyone to easily lend and borrow @Circle\'s popular stablecoin on the top Ethereum networks.
Now you can securely access the best apps, marketplaces, and onchain experiences with @MoonwellDeFi 🌜＄🌛 pic.twitter.com/oZ5AHBMMTl
— Moonwell 🛡️ (@MoonwellDeFi) February 14, 2024
USDC Anywhere: A Gateway to Diverse Platforms
USDC Anywhere provided users with simplified lending by automatically detecting USDC in their wallets across major Ethereum networks.
“With USDC Anywhere, lending USDC to Moonwell from the top Ethereum networks is a breeze, allowing you to start building your tomorrow in a matter of minutes,” said Moonwell.
The feature also enhanced cross-chain experiences by expanding users’ access to more platforms. “Borrowing USDC to explore the latest onchain apps, games, and NFT marketplaces on networks like Arbitrum, Optimism, Polygon, and Avalanche can now be done with a few simple clicks or taps,” said Moonwell.
Besides, the feature could automatically detect the stablecoins stored in the wallets on Ethereum and Base, in addition to the blockchains and platforms mentioned above.
CCTP for Enhanced Cross-Blockchain Security
According to the blog, at the core of USDC Anywhere’s functionality was Circle’s CCTP, which would eliminate ” most security risks associated with bridges,” providing a secure environment for transactions.
CCTP operated through a “burn and mint” mechanism to enhance the security and autonomy of asset transfers across blockchains. It deviated from traditional “lock and mint” bridges by ensuring that users maintain direct control over their assets, thereby avoiding the risks associated with long-term holdings in bridge smart contracts.
The protocol facilitates the direct minting of USD Coin on the target network, eliminating the reliance on unofficial, wrapped versions of the currency.
“Aligned with the Moonwell community’s mission to develop simple to use, yet powerful financial tools, USDC Anywhere marks a significant step towards a future where managing and growing a crypto portfolio is accessible to everyone,” said Moonwell.