Avalanche Stablecoins: USDC.e vs USDC and USDT.e vs USDT

You are new to the Avalanche network and you can’t figure out why there are so many different USDCs or USDTs, which one is the better USDT.e vs USDT and USDC.e vs USDC. This article will help you understand the difference between the various stablecoins and give you some hints about the usage of each one.

What is Avalanche?

Avalanche is a Smart Contract Platform, a platform of platforms, and a Multi-chain network. It leverages the Avalanche Consensus protocol in combination with a Proof-Of-Stake (PoS) mechanism to protect the network against Sybil attacks. 

The abovementioned combination enables the network to process up to 4500 transactions per second while reaching time-to-finality below 1 second. Time-to-finality is the time by which your transaction is completely processed and is irreversible. That’s especially important for financial applications, as someone doesn’t have to wait for one hour or a day to ensure that funds are transferred or transactions are processed.

Avalanche Primary network is comprised of 3 chains. The Contract Chain (C chain), Platform Chain (P Chain), and Exchange chain (X Chain). Avalanche ecosystem also allows anyone to deploy its own unique network of different blockchains with the subnet functionality.

AVAX is the native token on the Avalanche network that you can use to pay for gas fees when using a DeFi protocol or one AVAX NFT marketplace from the many NFT marketplaces we are going to present in this article.

Read: Everything you need to know about Avalanche

What is a Stablecoin?

Stablecoins are a subset of cryptocurrencies that are backed by a reserve asset and try to maintain price stability. Stablecoins have gained increasing attention as they aim to combine the benefits of cryptocurrencies—instant payment processing and security or privacy—with the volatility-free steady prices of fiat currencies.

The unpredictable nature of cryptocurrency values contrasts with the relatively steady pricing of fiat money, such as US dollars, or other assets, such as gold. While the values of fiat currencies fluctuate over time, the daily fluctuations are often more dramatic for cryptocurrencies, which fluctuate in value regularly. 

Overall, stablecoins attempt to mitigate price volatility by peg cryptocurrency values to more stable assets — often fiat currencies. Fiat is the term used to refer to the government-issued money that we are all used to utilizing on a daily basis, such as dollars or euros. 

Read: What is a Stablecoin? All you need to know about Stablecoins

Avalanche Stablecoins: USDC.e vs USDC

USDC.e and USDC represent in essence the same currency, Circle’s stablecoin USDC. The difference between the two representations on the Avalanche network is the fact that USDC.e is the wrapped version of USDC bridged from the Ethereum network to Avalanche C Chain via the Avalanche bridge, while the USDC is issued directly on Avalanche by Circle, making USDC the native USDC on the network. This implies that Circle’s customers can mint native avalanche USDC directly from a Circle account.

Worthy of note, USDC.e and USDC although represent the same assets, technically they are not the same, therefore you cannot send USDC.e to a USDC address or smart contract. USDC.e is also not supported by Circle’s products, circle deposit address and Circle APIs.

Both USDC.e and USDC are used by different protocols on the network, therefore, people might need to exchange one for another depending on which protocol they indent to use. See below for how to exchange one for another.

When it comes to sending and receiving native USDC or Avalanche USDC (USDC.e) from centralized exchanges, someone has to be careful about which version the exchanges are supporting. For instance, at the time of writing, someone can only withdraw or deposit avalanche USDC (USDC.e) with Crypto.com, while Binance allows only the deposit and withdrawal of native USDC tokens.

Make sure that you do your own due diligence before transferring assets to centralized exchanges on which type of asset is supported to avoid any unnecessary loss of funds.

Avalanche Stablecoins: USDT.e vs USDT

Similar to the USDC case, USDT.e and USDT are both representations of the same stablecoin pegged to the USD. The difference between the two representations is that USDT is the native token of Tether’s USDT on Avalanche Blockchain, while USDT.e is the wrapped version of USDT on Avalanche Blockchain bridged from Ethereum Network.

USDT and USDT.e are still used by different protocols within the Avalanche Ecosystem, therefore depending on the protocol users might need to use USDT, while for some other platforms users need USDT.e

When it comes to sending and receiving USDT and USDT.e to or from Centralized exchanges, someone has to do proper due diligence and ensure it uses the right representation of USDT to avoid unnecessary loss of funds.

How to swap USDC.e for USDC or USDT.e for USDT

Certainly, you can swap between the two representations of the two stablecoins in almost every decentralized exchange that they are traded on Avalanche C Chain, including Trader Joe. But, for swapping stablecoins someone gets better exchange rates on Stableswap such as Platypus Finance or Curve Finance compared to Trader Joe.

Below you can find the process of swapping one token for another on the two most popular Stableswaps on Avalanche. You can check both and use the one that gives you the best exchange rate.

Swap USDC.e for USDC or USDT.e for USDT on Platypus Finance

The first Stableswap that you can use on the Avalanche network to swap one stablecoin for another is Platypus Finance. Platypus Finance has a very elegant and easy-to-use design, which makes things very easy to new DeFi users.

USDC.e vs USDC - USDT.e vs USDT - Avalanche USDC - Platypus Finance - Avalanche Stablecoins
  1. Visit Platypus Finance dApp and connect your wallet.
  2. Select the Swap Tab on the top left of the page.
  3. Select the Stablecoin pair you are willing to swap.
  4. Select the amount you wish to trade.
  5. Once you do that click on the swap button and confirm your transaction.

Swap USDC.e for USDC or USDT.e for USDT on Curve Finance

The second Stableswap that you can find on Avalanche Network, which is also the largest Decentralized Exchange across networks is Curve Finance. Curve Finance has a bit of a more complicated UI, however, it is still easy for someone to use. If you are coming from another network, then you must know Curve Finance.

Read: Curve Finance: All you need to know about the leading Stableswap

USDC.e vs USDC - USDT.e vs USDT - Avalanche USDC - Curve Finance - USDT vs USDT.e - USDC vs USDC.e - Avalanche USDT
  1. Visit Curve Finance dApp, select the correct factory, and connect your wallet.
  2. Select the stablecoin pair you wish to trade.
  3. Select the amount you wish to trade.
  4. Click Sell and confirm your transactions.

Read: How to use Curve Finance – A beginner’s step-by-step guide

Final Thoughts

The Avalanche ecosystem keeps evolving and different protocols still use different representations of the stablecoins. In the near future, it is very likely that we will see more cross-chain DeFi protocols emerge on Avalanche that will utilize both USDC.e and USDT.e as their native tokens unless Avalanche bridge decides to stop bridging stablecoins and let only the native USDT and USDC be available in the ecosystem.

For now, if you wish to use any Stablecoins on Avalanche make sure to do your own due diligence and find out which representation of the token the protocol or dApp you are using is supporting. Also, swapping between the two representations of each Stablecoin is very easy and can be done on almost every DEX on Avalanche.

Aris Ioannou
Aris Ioannouhttps://coinavalon.io
Aris created Coinavalon with the purpose of helping the average person navigate the decentralized web. Aris has been passively in the space since 2017 and full time since late 2020. Before Coinavalon, Aris worked as a Business & IT Architect in the financial services sector. Aris holds an MSc in Advanced Computing from Imperial College London, a BSc in Computer Engineering from University of Cyprus and currently pursuing an MBA degree from CIIM.

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