Arbitrum Orbit Integrates USDC as Gas Token

Arbitrum Orbit Integrates USDC as Custom Gas Token

Developers utilizing Arbitrum’s Orbit infrastructure can now support USDC, the second-largest stablecoin, as a network gas token. Announced on August 7th, this new feature allows Orbit developers to use bridged USDC as a custom gas token, enabling network users to pay for transaction fees using the popular stablecoin.

OffChain Labs, the team behind Arbitrum, stated, “With bridged USDC as a custom gas token, users can now pay for transaction fees using one of the most popular and widely accepted stablecoins. This eliminates the need to hold multiple types of tokens solely for the purpose of covering gas fees, streamlining the transaction process and making it more user-friendly. No more worrying about ETH price volatility impacting your transaction costs.”

Key Benefits of USDC Integration

• Simplified Transactions: Users can now pay for gas fees directly with USDC, avoiding the need for multiple tokens.
• Stability: Using USDC reduces the impact of ETH price volatility on transaction costs.
• Grant Opportunities: Orbit builders can apply for the USDC Grant Program from Circle and Arbitrum’s own grants.

With over $1.6 billion worth of native USDC currently residing on the Arbitrum One network, users can easily move USDC from Arbitrum’s flagship network onto Orbit Chains.

Orbit Chain Customization and Expansion

Orbit is a framework that allows developers to create heavily customized Layer 2 and Layer 3 rollup chains using Arbitrum’s infrastructure. Developers can alter core features such as:

• Governance mechanisms
• Data availability layers
• Privacy features

Arbitrum announced support for custom gas tokens on Orbit Chains in January. Since then, Orbit chains have seen significant growth.

Orbit Chain Growth and New Networks

The integration comes as Arbitrum aims to expand Orbit chains onto new networks. The Arbitrum community recently voted to extend the Orbit infrastructure outside of the Ethereum ecosystem. The proposal includes a provision where 10% of profits generated by non-Ethereum Orbit deployments will be shared with the Arbitrum ecosystem, with 8% going to the Arbitrum DAO and 2% to the Arbitrum Developer Guild.

Recent growth in Orbit chains includes:

• Xai Network: A gaming-focused Layer 3 network co-developed by OffChain Labs, emerging as the top Layer 3 network by activity, consistently hosting more than 100 transactions per second (TPS).
• Reya Network: A modular Layer 2 network built for trading applications, leading as the top Orbit DeFi chain by total value locked. Following its mainnet launch in May, Reya Network currently hosts $119 million in total value locked and has facilitated $550 million in transaction volume.