Lately, the Zilliqa team has announced a mechanism to incentivize early Zilliqa Ethereum bridge users . The announcement states $ZIL incentives for a limited time when bridging three ERC20 assets - namely WBTC, ETH and USDT.
This vote questions the decision on incentivizing the bridging of USDT to Zilliqa and proposes using USDC instead.
- USDC is highly regulated and audited on a regular basis while USDT is associated with high regulatory risk
- USDC is backed 100% by USD while USDT is partially backed by USD
- USDC is most accurately pegged to the USD
- USDC is liquid enough for the Zilliqa ecosystem. USDC has a daily volume of >$2B while ZIL volume is currently <$100MM
- USDT is the most liquid USD pegged stable coin (~$50B daily volume)
- USDT has the longer track record
- USDT has wide spread adoption
- Potential native USDC issuance on the Zilliqa blockchain might introduce confusion about bridged ERC20 USDC and natively issued USDC