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.

Note:
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:
0x176211869ca2b568f2a7d4ee941e073a821ee1ff

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

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