🔵Circle CCTP
CCTP-enabled USDC supercharges stablecoin liquidity across the Synonym protocol.
Cross Chain Transfer Protocol
Circle's Cross-Chain Transfer Protocol (CCTP) is a permissionless on-chain messaging protocol that facilitates USDC transfers securely between blockchains via native burning and minting.
Synonym leverages CCTP for native Minting and Burning of USDC, allowing for cross-chain pooling of liquidity across all supported spokes. As such, supplied USDC from any network gets pooled on the Arbitrum Hub, unifying liquidity and directly tackling USDC fragmentation.
As an example, if USDC is supplied on Optimism (Spoke) is it instantly bridged to the Arbitrum (Hub), with Borrowers on all other supported networks being able to borrow from this unified pool. This results in more efficient and predictable asset utilization and interest rates.
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