Circle - Creating a Unified Liquidity Layer Across Web3

okay good morning I'm Jonathan ly product manager at Circle I think folks tend to come up here and ask how's everyone doing and then you stare at like a sea of dead faces because no one actually wants to respond so I'd like to try a little experiment scale of one to three one being the worst two being good three being great um okay here we go um Round of Applause if you're at one oh okay wow Sunday morning in Brussels no one's no one's having a bad morning I like that what about two two's right in the middle I'm at two as well I think two is a great spot given like the week ahead right there's a lot going on uh you don't want to be too high you don't want to be too low just want to start right in the middle what about three anyone at a three round of applause wow okay I did not expect that um that's that's great that's great I hope you don't regress to a two by the end of this very short talk so I have 14 minutes so as Joel mentioned and actually Joel is the the guy that hired me when uh a couple years ago at Circle so it's a tough act to follow but I also don't like the term stable coins for a different reason I think it it it kind of implies a little bit of stodginess um and that the industry maybe the product is stable and stale but that's certainly not the case I think based on what we're building at Circle there's tremendous upside uh we've already validated a lot of the the product and the value um and I think it's a very Dynamic space to be in So based on the amount of number three claps that are you might agree with me stable coins are here to stay um since kind of coming into the mainstream five or six years ago uh this is total market cap of stable coins um despite the dip you know um stable coin coins are not going anywhere anytime soon and I'm sure many of you folks know that Trad five players are entering stable coins and to me that's the greatest validation that you're in a good space that the people you're trying to disrupt are now hustling to make products that they should have made 5 years ago so Source defy Lama thank you defy Lama okay I won't dive too much into how The cctp Works technically uh happy to talk about that afterward please find me I'll be around um but just some quick stats off the bat to help set some context we've cumulative transferred $10 billion since launch just a year ago uh about 250 million in weekly volume across chains uh 1 million unique transactions and uh greater than 50 active developers these are the major developers I I think actually there's more than a 100 um but these are the folks doing kind of 90% 95% of the volume and then I don't know if folks can actually see this but I have a launch schedule or calendar down here of what of what we launched when so basically it's been kind of a tempo of one chain every couple months and we have um more planned absolutely oh you can't really see the shades there um and at the end of the day the cctp right it's valued lies in the network and usdc plus the cctp is the internet's um most efficient and most scaled interoperable Network for money so Network effects um this is a really interesting chart to show how Network effects started taking hold as we expanded the network so in the in the beginning we launched ethereum Avalanche arbitrum and then so that's four chains essentially uh ethereum Avalanche I can't count right now but that's fine you get it and then as soon as we started adding fifth sixth seventh chains uh the adoption on each chain started to Skyrocket um you see salana here in purple um after launch we started serving essentially 90% of the volume within a few weeks that's amazing uh that blue line up there that's a little confusing that's Noble for the cosmos ecosystem and the reason that started off at 100% is because native uscc didn't exist before we we uh launched onto Noble so from day one we are already serving 100% of their volume and interestingly um almost all that volume has gone to dydx um so we supported dyx and their migration to the cosmos ecosystem Capital efficiency so I hope there's not any economists in the room uh but if so let's let's ignore you know what we might think are some technical definitions of capital efficiency but here is what I propose is kind of a proxy to that which is how much of usdc total circulation is moving across chain natively at any given time so Redline circulation and sorry I don't know if folks can see this because of the podium here but essentially over time from last may we launched in April to now you can see the uh interchain or cross-chain velocity of usdc increasing as we grew the network um so usdc and cctp as far as I know is the only um Native Mitten burn Network that exists on the internet right now and the network effects are have been proven as we scale out the network here so the blue the blue row that would be um the actual magnitude of uh cross-chain volume and then the yellow line and yellow numbers below which are kind of hard to see those reflect the um the percentage of of total circulation the impact of the network on individual users again since launch April of last year till now um the CCP has directly generated 47k multi-chain wallets uh I think this has been is unheard of and really amazing to see the power of the network I only expect us to increase uh as we continue to expand the network I'm sure some of you folks are wondering what that Spike there in the middle is um that was due to an incentive campaign um I believe happened on across arbitrum and optimism um I might be wrong on on optimism but the takeaway was so that was that's actually basically air drop farming I don't want to rabbit hole into airdrive farming because that's not what this talk is about but at the end of the day that is in many cases people moving money across chain um I don't want to you know we don't need to relitigate whether air drop farming is a good thing or bad thing but that is certainly a use case this is not a common end durable use case of the cctp which I personally think is a good thing and I'll a slide coming up on what the actual um sustained use cases are of the cctp which I think are valuable and interesting to folks in this room long-term vision is that USC and the cctp allow will allow people to obtain and preserve the benefits of multi-chain multi-chain is not going away while minimizing the drawback back right the fragmentation that exists so the perfect world that we live in is where anytime you want to um get the benefits of multi-chain for example different assets use cases things like that you can do that without all the drawbacks without having to deal with um lockin mint Bridges and slippage and things like that so over time we're getting there this is an interesting chart for those who can see the full View here um the thickness of the line is generally proportional to the Cross chain volume between those two nodes so you can see that ethereum and uh between ethereum and arbitrum is quite thick I think that is actually historically our largest route uh and then between arbitrum and Avalanche as well but again this is you have to remember you know some of these nodes only came on in like the last 6 months so this chart will look very different in a year very different in 5 years um I hope to make a lot of this information publicly available soon by the way um cctp is growing rapidly but still day one that's a little reference to um you know that famous memo at at Amazon um while I certainly am not trying to make cctp or or Circle uscc anything like Amazon um I do like that mentality right We've Just Begun we've only been uh launched for a year and and there's Decades of opportunity ahead in my opinion so here are the segments that we've we've we've identified and we continue to cultivate both actively um through developer relationships and also passively by publishing information and develop our documentations that enable um developers in these segments to build Bridge apps and aggregators um nearly 200 million and this is monthly by the way so just last month um Bridge sdks and I'll just quickly review what I mean by that so Bridge apps uh and aggregators are I wasn't I'm not sure if I was supposed to give examples but like leafi um a bridge app would be like Wormhole portal Bridge um SDK a good example of SDK is Socket so they build a bridging SDK so that you can you know integrate cctp into your protocol for example centralized exchanges this is a really interesting one this is a surprise a segment that we didn't think um would be using the cctp but this is for treasury rebalancing so because of the capital efficiency and the availability and reach of the cctp we found that centralized exchanges are actually using the cctp at very high volumes and frequencies okay my time is that my time up or what is that I'm kidding uh they're using the cctp um to rebalance their treasur IES dexes and lending protocols um The Lending Protocols are using the cctp to allow cross chain kind of direct deposit into the protocol but the dex's are doing both that and what the Sexes are doing so that's a really interesting uh application as well and then self- custody wallets these are capital transfers for you know small amounts people like me and then Wales also use this CC DP directly oh back okay so what lies ahead um as mentioned the vision is to enable a chain agnostic world for end users while preserving the benefits of a multi-chain ecosystem The Best of Both Worlds I think we can get there focusing on ensuring that the cctp continues to be Capital efficient for users zero slippage native burn and mint um exploring ways to to enable usdc to be the universal gas currency I think that's fundamentally a good user experience transaction ux on par with existing fintech fintech apps for example you can send anyone money by doing at JM for example for me uh across both evm and non-m by the way because I do think um you know there's going to continue to be a growth in uh nonm networks that need to be connected and then payment settlement time times equivalent to Trad fight speeds uh this is really important so uh my team and I you know we're definitely focusing on evolving the CTP across this and all these other dimensions okay I went a little pissed past that Bell but um I think that's all I have thank you [Applause]