Aggregated USDC

To significantly boost liquidity and streamline cross-chain trading, Tunnl introduces an innovative USDC aggregation feature. When users deposit USDC from any CCTP-connected blockchain, their balance is credited in the form of an aggregated, chain-agnostic USDC, rather than being tied specifically to the original deposit chain.

For example, if a user deposits USDC from the Polygon blockchain, the smart contract internally records this deposit to maintain an accurate and secure ledger. However, the user sees only their aggregated USDC balance, which is fully interoperable across all supported chains.

When withdrawing, users have the flexibility to select any CCTP-connected blockchain. Tunnl's smart contracts first check the USDC balance available on the chosen chain. If sufficient USDC is not immediately available, the platform automatically initiates a cross-chain transfer (CCTP) from the blockchain holding the largest available USDC balance to fulfill the withdrawal request seamlessly. If additional USDC is still needed, the system efficiently cycles through other chains, starting from those with the highest balances, until the withdrawal is completely fulfilled.

This aggregated approach to USDC enables Tunnl’s orderbooks to achieve deeper and more robust liquidity. Instead of fragmenting liquidity into separate pairs across different chains, aggregated USDC acts as a universal counterpair for all tokens, greatly enhancing trade efficiency, minimizing slippage, and ensuring a superior trading experience.