TEMPCHECK: Should USDC be the chosen stablecoin for Linea?

TempCheck is open on Snapshot:

As we are writing, the MIP-5 vote is currently in progress. If MIP-5 is approved, Metalswap’s Hedging Contracts will be implemented on the Linea Mainnet.

Our Hedging Contracts system necessitates at least two pools to operate effectively: one for the asset, which in this instance is wstETH, and the other for a stablecoin, thus ideally USDC could be the stablecoin used in this scenario.

Research indicates that USDT and USDC are the most capitalized stablecoins in the DeFi sector, with capitalizations of $86 billion and $23 billion, respectively, accounting for more than 85% of the total stablecoin market dominance.

On the Linea Mainnet, USDC has the higher capitalization with $12 billion compared to USDT’s $3 billion.

Within the MetalSwap protocol, the following are in use:

218.6k USDT on the Ethereum Mainnet
55.6k USDC on the Optimism Mainnet

Opting for USDC on Linea could also help to balance the liquidity among stablecoins.

While USDC is native to the Ethereum blockchain, USDC tokens can be bridged on other L2 networks, such as Linea, and are represented as “USDC.e”

Linea Mainnet - USDC.e Contract address:

Considering this information,
Do you believe USDC should be MetalSwap’s stablecoin for Linea?

This TempCheck will be open until Nov 12, 2023, 4:01 PM