[PROP# 29] Add USDC as a base asset

Dymocracy
1

Proposal

Add USDC bridged from Noble as a base asset to Dymension’s native DEX.

Context

Dymension L1 hosts a native DEX that facilitates liquidity bootstrapping, token pricing and other associated market making features. Intended to reduce technical and user complexity to create a liquidity pool on Dymension’s DEX the DYM token is required as a base asset. This restriction is implemented by requiring a base asset be voted in by Dymension’s governance.

The limitation has prevented of common exchange patterns of using stablecoins such as USDC and USDT as base assets to price volatile counter-party tokens. As DYM is required as a base asset liquidity providers have been forced to bear economic risks/rewards associated with volatile tokens on both sides of the liquidity pools.

Dymension’s core contributing team has spoken with many builders in the Dymension ecosystem and have found that using stablecoins as base assets to be a common request. Therefore the core team is proposing enabling of using USDC as a base asset for new liquidity pools on Dymension’s DEX.

Additionally, this proposal set the foundation for Dymension’s upcoming Beyond upgrade which enables IROs to be bootstrapped with any base asset. Meaning, if this proposal were to pass IROs would be able to raise in either DYM or USDC to launch their RollApp.

Governance votes

The voting period for this proposal as set on genesis is 5 days beginning from the time of deposit. The following items summarize the voting options and what it means for this proposal:

  • YES
  • NO
  • NO WITH VETO - A ‘NoWithVeto’ vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to Dymension, (2) disproportionately infringes on minority interests, or (3) violates or encourages violation of the rules of engagement as currently set out by Dymension governance. If the number of ‘NoWithVeto’ votes is greater than a third of total votes, the proposal is rejected and the deposits are burned.
  • ABSTAIN - You wish to contribute to quorum but you formally decline to vote either for or against the proposal.
3 Likes
2

Thanks @Shaolin

For a long time I believed this is the right approach and an important change to introduce to Dymension’s liquidity layer. Complete permissionless usage of the platform (e.g opening pools with various assets other than DYM) is an important aspect for growth and usage.

I wil vote YES.

1 Like
3

I think the time has arrived for USDC as a base asset. What is the logic on selecting Noble as the network versus others like USDC on Base or Arbitrum or Solana? They’re seeing a stablecoin mcap of $4B, $2.6B and $11.79B, respectively.

1 Like
4

Noble is the IBC native USDC provider supported by Circle’s CCTP platform. As such, all native USDC from Arbitrum, Solana and other ecosystems are transferred to Dymension via the Noble blockchain.

All USDC is fungible across ecosystems thanks to CCTP and can be quickly deposited to Dymension via the Portal in one transaction.

2 Likes
5

Does the team have any estimate on how much volume would be generated from this proposal in the near term?

6

In the near term we believe this would slightly increase volumes estimated (10%-15%) while long term we expect this change to solidify and have about the same volume as DYM base pairs.