Centre Consortium has announced the upgrade of the USD Coin (USDC) stablecoin, and how its new version 2.1 works.
Centre Consortium members Circle and Coinbase today announced an upgrade to the USD Coin (USDC) protocol and smart contract, Version 2.1 and the implementation of the USDC Funds Recovery Process for USDC mistakenly sent to the smart contract. https://t.co/FtcfZ2yXv8
— CENTRE (@centre_io) April 26, 2021
“Centre Consortium members Circle and Coinbase today announced an upgrade to the USD Coin (USDC) protocol and smart contract, Version 2.1 and the implementation of the USDC Funds Recovery Process for USDC mistakenly sent to the smart contract”.
The Consortium has reportedly described the process for recovering USDC funds through an update to the USD Coin protocol and smart contract on the Ethereum blockchain.
In practice, this new version 2.1 automatically prevents users from sending USDC to the smart contract, and for any funds mistakenly sent, they can be recovered.
From USDC 2.0 to USDC 2.1
USDC is the stablecoin born from the collaboration of Circle and Coinbase, which initially used the Ethereum blockchain.
Due to ongoing network congestion and skyrocketing transaction fees, USDC announced last summer that it would use the Algorand blockchain.
Indeed, in August 2020, the new USDC 2.0 version saw the update of its protocol, including the novelty of gasless sends, which already allows developers to have the transaction fee paid to a third address.
Now, with the current USDC 2.1 version, users are given the option of not using (or recovering mistakenly sent funds) the smart contract on Ethereum’s blockchain.
How does the recovery of funds work in USDC 2.1?
Firstly, to be eligible in the USDC funds recovery process, you must have a Coinbase account and agree to all the terms required to continue with the process.
By filling in a form, you activate the request for fund recovery and Coinbase will be responsible for confirming or not confirming your authorization. The procedure can obviously become complex or slow, depending also on the data that the platform will need. In this regard, here’s what Centre Consortium had to say:
“We’re happy to be able to provide a safe solution and formal recovery process. We appreciate your patience while we confirm and verify these transactions before returning the funds to their senders. However, this is a manual process that will take some time. Your request will be processed upon receipt. Please do not create additional tickets via regular support channels and only submit requests though our dedicated form. Simply filling out the form will add you to the list for recovery. The resolution of your claim may take up to 120 days“.