Skip to content

Commit

Permalink
Update bridged_USDC_standard.md
Browse files Browse the repository at this point in the history
We are updating this documentation to enable EURC as part of the bridged_USDC_standard.
  • Loading branch information
blincf authored Mar 14, 2024
1 parent 6573754 commit 103b33c
Showing 1 changed file with 13 additions and 7 deletions.
20 changes: 13 additions & 7 deletions doc/bridged_USDC_standard.md
Original file line number Diff line number Diff line change
Expand Up @@ -4,7 +4,7 @@

The result is a secure and standardized way for any EVM blockchain and rollup team to transfer ownership of a bridged USDC token contract to Circle to facilitate an upgrade to native USDC, if and when both parties deem appropriate.<sup>2</sup>

This document provides a high-level overview of the process. Note that this is also extensible to implementations of bridged EURC (Circle’s euro-backed stablecoin).
This document provides a high-level overview of the process. Note that this also applies to to implementations of bridged EURC (Circle’s euro-backed stablecoin), as they follow the same implementation.

## How it works

Expand All @@ -28,20 +28,27 @@ The third-party team’s bridged USDC token contract is expected to be identical

Using identical code facilitates trustless contract verification by Circle and supports a seamless integration with existing USDC services. To facilitate this, the third-party team may choose one of the following:
- Copy previously deployed bytecode from a recent, native USDC token contract deployment (both proxy and implementation) on an EVM blockchain, for example [Arbitrum](https://arbiscan.io/token/0xaf88d065e77c8cc2239327c5edb3a432268e5831), [Base](https://basescan.org/token/0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913), [OP Mainnet](https://optimistic.etherscan.io/token/0x0b2c639c533813f4aa9d7837caf62653d097ff85), or [Polygon PoS](https://polygonscan.com/token/0x3c499c542cef5e3811e1192ce70d8cc03d5c3359). Note that you must supply different constructor and initializer parameters where needed.
- For EURC, please reference the bytecode from the [Ethereum](https://etherscan.io/token/0x1aBaEA1f7C830bD89Acc67eC4af516284b1bC33c) implementation
- Build the [FiatToken contracts](https://github.com/circlefin/stablecoin-evm#contracts) from source. In this case, the compiler [metadata](https://docs.soliditylang.org/en/latest/metadata.html) must be published or made available to support full contract verification. Various suggested compiler settings that Circle uses can be found [here](https://github.com/circlefin/stablecoin-evm/blob/35d66ae39f7038e30f04f87635f8bca6f8e38b04/truffle-config.js#L34-L45), which will allow the third-party team to reach the same bytecode if followed consistently.

**Token Naming**

Circle has recommended [naming guidelines](https://brand.circle.com/d/M9z54TaEwsWL/stablecoins#/usdc-brand-guide/usdc-naming-guidelines) for the Token Name and Token Symbol attributes of a bridged USDC token contract that third-party teams are encouraged to follow. It is often the case that USDC is bridged from Ethereum to a new destination blockchain, and as such, the following is commonly used:
Circle has recommended [naming guidelines](https://brand.circle.com/d/M9z54TaEwsWL/stablecoins#/usdc-brand-guide/usdc-naming-guidelines) for the Token Name and Token Symbol attributes of a bridged USDC or EURC token contract that third-party teams are encouraged to follow. It is often the case that USDC and EURC are bridged from Ethereum to a new destination blockchain, and as such, the following is commonly used:

USDC
- Token Name: Bridged USDC (Third-Party Team)
- Token Symbol: USDC.e

EURC
- Token Name: Bridged EURC (Third-Party Team)
- Token Symbol: EURC.e


Note that the text shown in parentheses above would be the third-party team’s company name.

**IMPORTANT NOTE:**

- Once deployed, the bridged USDC token contract must not be upgraded to a new or different implementation at any time, outside of subsequent FiatToken versions authored by Circle.
- Once deployed, the bridged token contract must not be upgraded to a new or different implementation at any time, outside of subsequent FiatToken versions authored by Circle.
- FiatToken has a number of one-time use initialization functions (listed below) that are not permissioned, and therefore should be called during contract deployment.
- Due to the proxy pattern used by FiatToken, after (or while) specifying the current implementation that the proxy points to, these initialization functions must be called to set the values correctly on the proxy's storage. If not, then any caller could invoke them in the future.
- It is also recommended to call these functions directly on the implementation contract itself, separately from the proxy, to disallow any outside caller invoking them later. At the timing of writing, these initialization functions include:
Expand All @@ -50,11 +57,11 @@ Note that the text shown in parentheses above would be the third-party team’s
- [initializeV2_1](https://github.com/circlefin/stablecoin-evm/blob/405efc100c016ed1a437063b6274b4e24ea7b8b1/contracts/v2/FiatTokenV2_1.sol#L34)
- [initializeV2_2](https://github.com/circlefin/stablecoin-evm/blob/405efc100c016ed1a437063b6274b4e24ea7b8b1/contracts/v2/FiatTokenV2_2.sol#L41)

There are a number of reference [deployment scripts](https://github.com/circlefin/stablecoin-evm/tree/35d66ae39f7038e30f04f87635f8bca6f8e38b04/migrations/direct) in the repository that demonstrate patterns for deploying USDC and configuring the implementation. For instance, there’s an [upgrader pattern](https://github.com/circlefin/stablecoin-evm/blob/35d66ae39f7038e30f04f87635f8bca6f8e38b04/migrations/versioned/8_deploy_v2_2_upgrader.js), where a smart contract sets the FiatToken implementation contract and calls the initialize functions within a single transaction.
There are a number of reference [deployment scripts](https://github.com/circlefin/stablecoin-evm/tree/35d66ae39f7038e30f04f87635f8bca6f8e38b04/migrations/direct) in the repository that demonstrate patterns for deploying USDC/EURC and configuring the implementation. For instance, there’s an [upgrader pattern](https://github.com/circlefin/stablecoin-evm/blob/35d66ae39f7038e30f04f87635f8bca6f8e38b04/migrations/versioned/8_deploy_v2_2_upgrader.js), where a smart contract sets the FiatToken implementation contract and calls the initialize functions within a single transaction.

**Token Roles**

FiatToken uses a minter pattern, where minters can be configured via a master minter role to mint up to an allowed amount. One way to adapt the minter pattern to a bridged USDC token contract is to configure the destination bridge as a solo minter.
FiatToken uses a minter pattern, where minters can be configured via a master minter role to mint up to an allowed amount. One way to adapt the minter pattern to a bridged USDC or EURC token contract is to configure the destination bridge as a solo minter.

The individual FiatToken roles (Owner, Pauser, Blacklister, MasterMinter) could also be assigned to the bridge, or some other upgradeable contract, as long as there's the ability to add a hook in the future to enable transferring the roles to Circle.

Expand All @@ -65,6 +72,5 @@ If you would like more flexibility with permissioned minter configurations, you
Please reach out on [our Discord](https://discord.com/invite/buildoncircle) if you have questions that were not addressed in this document. We value feedback and suggestions from the community to improve our documentation.

-----------
1. Bridged USDC Standard grants Circle the option, but not the obligation, to obtain ownership of the token contract and upgrade to native USDC. Additionally, Bridged USDC Standard must be incorporated prior to deploying a bridged USDC token contract as it cannot be retroactively applied. The requirements provided are for informational purposes only and will apply should Circle choose to upgrade a particular form of bridged USDC to native USDC. These requirements do not constitute an offer to upgrade a particular form of bridged USDC. Circle’s decision to upgrade a particular form of bridged USDC to native USDC may be subject to additional terms and conditions. As noted in Section 8 of the [USDC Terms of Use](https://www.circle.com/en/legal/usdc-terms), bridged forms of USDC are subject to certain risks and are not issued by Circle.
1. Bridged USDC Standard grants Circle the option, but not the obligation, to obtain ownership of the token contract and upgrade to native USDC. Additionally, Bridged USDC Standard must be incorporated prior to deploying a bridged USDC token contract as it cannot be retroactively applied. The requirements provided are for informational purposes only and will apply should Circle choose to upgrade a particular form of bridged USDC to native USDC. These requirements do not constitute an offer to upgrade a particular form of bridged USDC. Circle’s decision to upgrade a particular form of bridged USDC to native USDC may be subject to additional terms and conditions. As noted in Section 8 of the [USDC Terms of Use](https://www.circle.com/en/legal/usdc-terms), bridged forms of USDC are subject to certain risks and are not issued by Circle. The same conditions apply to EURC.
2. The target blockchain will undergo Circle’s internal Blockchain Due Diligence Process. That process involves reviews for both compliance and risk factors, as well as coverage for legal and technology risks, prior to approval. The diligence focuses on crypto and blockchain nuances, and an assessment of the strategic, financial, operational, technology, legal, and regulatory risks that are present.

0 comments on commit 103b33c

Please sign in to comment.