Circle's CCTP

Cross Chain Transfer Protocol

Circle's Cross-Chain Transfer Protocol (CCTP) is a permissionless on-chain utility designed to facilitate the secure and efficient transfer of USDC between different blockchain networks.

ChainSwap utilizes CCTP to allow for native interoperability for USDC using a burn and mint mechanism. This means when you transfer USDC using CCTP a certain amount of USDC is burned on the sending chain, while a corresponding amount is minted on the destination chain. Circle acts as a validator in this process, ensuring the burned USDC is not re-used. CCTP offers several advantages like enhanced security and avoids the risks associated with traditional bridge hacks where funds are locked on a central entity. It also is an efficient medium to simplify transactions and lead to faster processing times in a cost efficient manner. This also allows for simulations and less slippage to occur on swaps as USDC value remains relatively constant.

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