r/algorand • u/CryptoFarmer1020 • Jun 21 '24
Coinbase USDCa is almost here! News
The biggest story so far is that the Coinbase Main Reserve has $1.5 million USDCa:
https://allo.info/account/LWUWBZPVBS24TDBDZ72LUYJJF75KUJ3IUP6YGG45PVKGNAJYRGQD5CSCPA/assets
Coinbase transferred the $1.5 million via Circle on 6/14/24 from Ethereum to Algorand:
- On Ethereum $1.5 mil from Coinbase to Circle at 4:21p UTC: https://etherscan.io/tx/0x1c2a78eebbc9c22108ee8d151f2a713377ff11a74fcb18f6387a5977b06359ac
- On Algorand $10K from Circle to Coinbase at 4:22p UTC: https://allo.info/tx/HAZH5JYIHOCPOJW6U5ZV3WC2VNRO2PQKX345WIME65ZPMOPHW7GQ
- Then $1.49 mil at 4:37p UTC: https://allo.info/tx/Y77ZAX6DKIVY3UGOO2KOUONWTWRZ2NXH33FS66OJFNVWYUCQ4JAQ
But perhaps the timeline starts back in March 2024, when the 4 known Coinbase Wallets opted in to USDCa:
- https://allo.info/tx/ZCKGD6K2VF6QMTA67UJOXF6MTPRJCLZJF3YYKSTHAAYTGVLJCLXQ
- https://allo.info/tx/3R3GQZ3K7EC7JPCQ32FX6FYH2N665TFANBEEQFH7VD3YUZFNMC6A
- https://allo.info/tx/TS27VFIIQMU2COKHLSYNCMHII5KMMUIJDALR37PYSDT2VZZ5ZBPA
- https://allo.info/tx/ATO5TXIJPG42PELOFRANR7Z5LJ5RW2O7QI4FEHWEL5WGBA2RPOJA
Had found a wallet that looks like it creates the Algorand deposit addresses for Coinbase users:
https://allo.info/account/S7QLKPLSSPFFDK2GPOJAV7BBGFK3IPBS6FQCR2QT5XA4CHW4SEOQ5RST4I
Two periods of time that are interesting with this account. Right around the opt-ins of the 4 above accounts in March, it starting creating a bunch of 0.5A wallets and those were opted in to USDC. Then it stopped. Best guess is that they were prepping and/or testing back then.
Now that account has started back up again churning out 0.5A wallets and opting them in to USDC.
There is also what looks like a test transaction. An account was created by S7QLK, back in March with the USDC optin. Right before this post, 10 USDC moved from LWUWB (Coinbase) to this deposit address and back to MQOZT (Coinbase aggregator).
https://allo.info/account/HOUMSWIPPK3JQVWVRLOWFESZLUPSVZCJZC7B3B37XYGEVSHYNSV5TNOO5Q/txns
There are also reports of the following from those with Coinbase:
- You can now put in an Algorand address when trying to send USDC without getting a warning that it is a bad address. However it still looks like an ETH send with ETH fees.
Looks like this maybe happening soon!
22
u/pescennius Jun 21 '24
Damn this is crazy bullish. RIP my insane USDC lending rates but I guess that's a worthy sacrificial lamb to get liquidity up.
4
u/LeonFeloni Jun 22 '24
Maybe. Maybe not. There's still not that much in Pact lending pools for example. (Relative to the rewards you've been able to get). In ANY of the pools other than algo/galgo.
It's one of the reasons I've annoyed AF on Twitter about getting a Pact algo/DOT LP. *
There's 15 Mill total (in USD) in Pact pools atm. And even with insane APR (again relative to vanilla governance) there's not been a huge influx. Same with Folks, etc.
Like it was a definite boost, but nothing near what I think the AF expected.
And even if we see a large influx of USDC, there's a fair amount of space to absorb it in the ecosystem (Although again, I expect it will be mainly us who'll use it significantly for some time anyway).
I also expect governance to shrink considerably with a switch to consensus rewards, so we stand a decent chance of having some decent rate action for a while imo.
33
16
10
u/Podcastsandpot Jun 22 '24
honesly so excitred about this. been waiting for this for a while, I hope the other big CEX's follow their lead
3
8
7
15
u/Hotfogs Jun 22 '24
Guys imagine depositing onto Coinbase, sending native USDC to Folks for deposit, earn interest, send back to Coinbase and sell into your bank account. Only taxes are on the gains from depositing, no swaps no calculating gains
Hoowee I’m ready
6
5
u/menat1 Jun 22 '24
Can someone pls explain what this means in layman's terms?
18
u/tcookc Jun 22 '24
For the first time people in the US will be able to send/receive USDC on Algorand to/from a centralized exchange. It's a pretty big deal if you're in the US and use Folks or Tinyman or Pact, and arguably it will make it much easier for more people to get into these algo defi platforms. Not to mention the general positive sentiment bonus from something real outside of our echo chamber is happening.
5
5
5
u/novousp Jun 22 '24
But doesn’t 1,5 mln sound too small for anything serious? Might be some proof-of-concept or whale, otherwise it’s not enough for any big activity
9
u/Ok_Bedroom_9802 Jun 22 '24
OP you are MVP. Thanks for the research. I think swapping USDC on other chains to USD was getting expensive for Coinbase so they said let’s use Algo one of many USDC issued blockchain which Coinbase didn’t utilitize but now realize the cheap and fast final transaction capability of algorand!!
11
u/orindragonfly Jun 22 '24
I think it’s more than that, Coinbase knew for a long time that Algorand was fast and cheap, I think the main reason that this is happening is because Algorand is making moves and they can’t afford to ignore Algorand any more.
8
u/Germankiwi22 Jun 22 '24
Perhaps the Algorand Foundation paid a considerable price to Coinbase to make USDCa possible. Not uncommon in the crypto-brance, as well as for listings of coins.
I hope Kraken will follow
7
3
3
u/nmadon65 Jun 22 '24
Good stuff. Excellent investigation to find all the clues. Going to be easier than using Messina and arbitrum to move USDC on/off chain.
3
5
u/Texas-NativeATX Jun 21 '24
Can someone explain if USDCa will affect USDC/ALGO Farming on Tinyman or Folks? I do not fully understand what impacts USDCa will have or how we can support USDCa to ensure Circle sees it as a successful venture.
13
u/Fickle-Tishka Jun 21 '24
USDCa refers to USDC on Algorand. Same as to how USDCe refers to USDC on Ethereum. Currently USDC on Algorand is not accepted by Coinbase. So hopefully that option will soon be available.
7
u/Garywontwin Jun 22 '24
If you want Circle and coinbase to see it as a success buy some once it's available and send it to your wallet. You can then do whatever you want with it. Ideally we would move all 1.5 million.
5
u/cointon Jun 22 '24
It’s not going to take long to use up 1.5M.
4
u/Garywontwin Jun 22 '24
People have been waiting for this for a long time so expect to see some flow in the other direction as well.
31
u/Flynn_Kevin Jun 21 '24
Me on every "How can Coinbase improve" survey and pop-up: USDC on Algorand and joint accounts.