Circle Announces A v2.2 Upgrade For USDC And EURC

• Circle announces a v2.2 upgrade for USDC and EURC to reduce transaction fees by about 7%.
• The upgrade enhances efficiency and security on EVM blockchains, supporting wallet transfers.
• It is backward-compatible, requiring no action from users, with a phased rollout in the next few months.

Circle, a stablecoin issuer, has announced an upgrade that will cut transaction fees by around 7%.

This v2.2 upgrade, involving USDC and its euro counterpart EURC, improves transaction performance on Ethereum Virtual Machine (EVM) blockchains significantly.

New USDC and EURC Functions

Six major modifications are included in the upgrade, which builds on the momentum of USDC’s expansion. Notably, by implementing EIP-1271, it will enable signature validation from smart contract wallets.

This functionality will allow transfers from smart contract wallets as well as private key wallets, boosting account abstraction support. Allowing users to pay network gas fees in USDC and EURC is a huge step forward for mainstream user experiences in the EVM ecosystem.

“USDC is becoming more efficient, with a new v2.2 upgrade (users don’t have to do anything), which will reduce gas costs for every transaction, improve support for using USDC with account abstraction, and bolster security on EVM chains,” Circle CEO Jeremy Allaire said.

The patch also improves the blocklist check procedure in USDC and EURC smart contracts. It attempts to improve the efficiency of the lookup process and significantly reduces network gas expenses for various functions.

Cost savings for routine functions such as transfers, payments, and exchanges are expected to range between 6% and 7%.

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Circle Strengthens Stablecoin Security

The patch also includes attempts to strengthen EVM blockchain resiliency against splits. A new smart contract update will allow for dynamic inference of the official chainID. As a result, users are protected from potential misuse of cash on unapproved forks.

Another major change is the removal of blocklist checks from non-fund-moving methods. This adjustment will result in even lower network gas expenses when utilizing USDC and EURC. Gas savings are projected to be roughly 7.34% for approvals and 3.5% for increase and reduce allowance activities.

The v2.2 upgrade is totally backward-compatible and requires no user or developer intervention. The progressive release starts on the Avalanche Fuji testnet, with plans to finish the update across other blockchains over the following few months.

This upgrade will be implemented on the Ethereum mainnet and other important platforms in January 2024.

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