Announcing CCTP on Noble - Enabling Easy Access to USDC

TLDR: What is CCTP and How it Works

Circle’s Cross-Chain Transfer Protocol (CCTP) on Noble enables users to send their USDC, the collateral contemplated by dYdX Chain, from other chains directly to dYdX Chain in an easy, simple and secure manner
Example: User wants to send their USDC on Ethereum to dYdX ChainSolution: By leveraging CCTP, USDC can be burned on Ethereum, re-minted on Noble, and forwarded via IBC to dYdX Chain in one transaction. It’s that simple!

Introduction

We are thrilled to announce that USDC on Noble and the imminent launch of CCTP is poised to unlock huge UX benefits for dYdX’s v4 software (“dYdX Chain”).

The open-source dYdX Chain is powered by the Cosmos stack, which enhances the exchange’s performance and decentralization. However, as a sovereign application-specific blockchain, a key requirement for dYdX Chain has always been a seamless migration path for native assets from Ethereum to Cosmos.

Today, we are excited to announce that the final component of this migration path - Circle’s implementation of the Cross-Chain Transfer Protocol (CCTP) - will launch on Noble's mainnet on November 28th after being available on Noble's testnet as of November 3rd.

CCTP will enable users to easily migrate USDC between blockchains in a single transaction. In fact, users on any CCTP-enabled blockchain (currently Arbitrum, Avalanche, Base, Ethereum, and OP Mainnet) will have a way to transfer their assets to Cosmos.

CCTP on Noble is a major engineering initiative which was first presented in a testnet demo at Cosmoverse in October. Now on the cusp of CCTP mainnet deployment, it reflects an enormous onboarding advantage for dYdX Chain and the Cosmos ecosystem. Let’s dig in!

What is Noble?

Noble is a Cosmos application-specific blockchain that is purpose-built for native asset issuance. Noble is the issuance chain for native USDC in the Cosmos and IBC ecosystem with over 14.2 million USDC currently on-chain. As an infrastructure provider, Noble plugs into over 50 IBC-connected blockchains and enables the seamless transfer of native USDC throughout the IBC ecosystem.

What is CCTP?

CCTP enables USDC to be sent securely between supported blockchains via a native burn and mint process. There is no reliance on custodial bridging. Here’s an example of a simple CCTP transfer flow:

User transfers USDC from one chain to another via a third-party app, thereby burning USDC on the source chain (e.g., Ethereum)
Circle’s automated service observes and attests to the burn event
Either the user or a third party relays the attestation to the destination chain (e.g., Noble)
User receives USDC on the destination chain (e.g., Noble)

Interacting with CCTP and dYdX Chain

As the first non-EVM implementation of CCTP, Noble has had the opportunity to build additional functionality on top of the core CCTP protocol, which vastly improves the user experience of onboarding to any IBC-connected blockchain from other ecosystems like Ethereum.

After the mainnet launch of CCTP on Noble, Noble plans to introduce router functionality that can automatically forward USDC minted by CCTP to IBC-connected blockchains. This means users will be able to sign one transaction on any CCTP-enabled chain (e.g., Ethereum) and seamlessly receive their funds on any IBC-connected chain without having to specify the behind-the-scenes routing.

The unique IBC transfer flow, once forwarding is available, is as follows:

User transfers USDC from one chain to another via a third-party app, thereby burning USDC on the source chain (e.g., Ethereum) and including a forwarding message (e.g., “forward to dYdX Chain as destination chain”)
Circle’s automated service observes and attests to the burn event
Either the user or a third party relays the message and attestation to Noble
Noble’s router module executes the forwarding message via IBC per the contained metadata
User receives minted funds on the destination chain

Noble’s router module is expected to launch later this year. In the meantime, users can use third-party messaging protocols to forward USDC from Noble via IBC after CCTP issuance on Noble.

Stay tuned for CCTP on Noble mainnet on November 28th!

Legitimacy and Disclaimer

Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.

dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain’s infrastructure.

The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.

The dYdX Chain software is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof) “AS IS, WHERE IS”.

Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.