Fantom Chain USDC
What is the least expensive path?
The Fantom Opera (FTM) chain launch of Charge DeFi is drawing near. As investors should know by now they are going to need $USDC on FTM to be able to create their liquidity pools (LPs). Each investor will have to decide for themselves how much USDC to bring to the table to create their LPs.
I personally hope investors think long and hard about how their decisions will affect their investment. The total quantity of $fStatic emitted from the rewards pool was 105,000. The quantity of $fCharge emitted will be 425.
The initial price of $fStatic will be 10 $USDC while the starting price of $fCharge will be 625 $USDC. These prices equate to 1,050,000 and 265,625 $USDC respectively for the initial supplies.
At these levels liquidity will be very low and price swings could be quite wild for both buys and sells. The more outside $USDC investors bring the more muted these effects will be. Unfortunately many investors will likely have insufficient $USDC on hand to pair with all of their initial stakes. Some will likely not bring any.
For investors that do plan to bring $USDC the following may help you do so at the lowest cost possible.
The following table shows the costs involved to convert 1,000 USD/$BUSD into $USDC using various methods. For central exchanges I will show expected costs for Coinbase Pro, Crypto.com, and Binance.US. For decentralized exchanges I will show costs for PancakeSwap and SpookySwap.
All of the options except for SpookySwap would result in the need to bridge $USDC onto the FTM chain. Using Coinbase would result in a secondary withdrawal fee since they only allow ERC-20 withdrawals. Binance.US and Crypto.com both support BSC withdrawals of $USDC.
The following table is accurate as of 25 March 2022 at 5:59 AM UTC.
Based on the current rates and fees for me it is least expensive to exchange $1,000 worth of $FTM that I purchased from Binance.US for $USDC using SpookySwap. Rates and fees can vary significantly throughout a given day. In particular withdrawal fees for $USDC from Coinbase will change based on the congestion on the ETH network.
Investors Outside of USA
You may have some additional options. While I don’t know of any central exchanges personally that allow you to directly withdraw $USDC onto the FTM chain this may be something available to you. If available, and like Crypto.com or Coinbase Pro they don’t charge a fee for exchanging to $USDC that will likely be your least expensive path.
There are a number of DEX aggregators on FTM. When exchanging assets such as $FTM for $USDC it may be worthwhile to use one of them instead. I have personally used Firebird Finance’s excellent app to exchange $FTM for $USDC. It utilized multiple DEX providers to obtain the best price for my exchange routing a portion of my buys to each. The total gas fees involved for interacting with Firebird and the aggregated DEX systems was $0.50.
Update: Stargate Finance FTW
Since I originally wrote this article I became aware of another recourse which I have found to be superior when transferring stable coins between chains. With Stargate Finance I am able to transfer directly from BSC $BUSD to FTM $USDC at a very reasonable fee. The fee I was recently charged to transfer a fairly large sum was less than 1/4 of the fee that I would have been charged to perform the conversion from $BUSD to $USDC on BSC using a DEX. The gas fee for the transfer was only $0.70. Better yet, the conversion and deposit of my $BUSD from the BSC network into $USDC on FTM was completed in less than five (5) minutes which is faster than I have experienced when transferring similar amounts using multichain.org.
When bridging it is always best to be able to see the tokens that are being bridged on the original and target chains. Also, when bridging or sending assets for the first time it is always recommended to try with a small amount first.
All content is provided for informational and entertainment purposes only. Investors should do their own research and make sure they understand the risks of their investment before committing funds. Cryptocurrency is a high risk asset class with high levels of volatility. Loss of principal is possible.