It has been a month since Circle made USDC available on Stellar network but there was no cross chain swap tool available. Well, folks at Ultra Stellar have churned out a dedicated website that lets you convert USDC on Stellar network to USDC on Ethereum blockchain where it resides as ERC20 token.
There are fees involved when you convert from USDC on Stellar to USDC ERC20 but there are absolutely no fees when you swap your Ethereum ERC20 USDC to Stellar based USDC.
This tool, available on usdcswap.com, will allow you to swap your USDC on Ethereum to Stellar and vice-versa.
Minimum deposit amount when converting from USDC on Stellar to ERC20 is 20 USDC and maximum amount is 10,000 USDC. You will also receive less USDC as Ultra Stellar needs to pay for exorbitant Ethereum’s gas fees.
On the other hand, if you swap your ERC20 USDC to Stellar USDC, minimum deposit is 1 USDC and maximum amount is 10,000 USDC. There are no fees when you do this swap and you will receive same amount. For example, swapping 5,000 ERC20-based USDC will get you 5000 USDC on Stellar.
Once your USDC is on Stellar network, you will be able to enjoy near-instant and almost zero transaction fees.
This tool was very much required as no major exchange has incorporated Stellar-based USDC asset so the only way until now was to convert back to XLM and then to USDC. This tool makes everything seemless.
So why should one hold USDC on Stellar as opposed to Ethereum? Since transaction fees are almost zero, USDC on Stellar network is suitable for remittance, merchant payments and so on.