Example USDC as Native Token (DIY)

Learn how to transfer USDC to a new Avalanche L1 and use it as a native token via ICTT.

In this section, you will learn how to transfer USDC from Avalanche’s C-Chain to a new Avalanche L1 using Interchain Token Transfers (ICTT) and set it up to act as the native token on the new L1. This guide will take you through the steps of configuring a local network environment, deploying the necessary contracts, and transferring tokens.

Create a new blockchain and Deploy on Local Network

Use the Avalanche CLI to create a new blockchain where you will deploy USDC as the native token.

avalanche blockchain create myblockchain

avalanche blockchain deploy myblockchain

Acquire USDC On Fuji C-Chain

The address for USDC on Fuji C-Chain is 0x5425890298aed601595a70ab815c96711a31bc65. For convience we have already deployed a TokenHome to the C-Chain for USDC with the address 0x546526F786115af1FE7c11aa8Ac5682b8c181E3A

You can use the Core Faucet to get some USDC on Fuji.

export USDC=0x5425890298aed601595a70ab815c96711a31bc65
export USDC_HOME_C_CHAIN=0x546526F786115af1FE7c11aa8Ac5682b8c181E3A

Deploy Interchain Token Transfer Contracts

Set up the remote transferer contracts for transferring tokens between the C-Chain and the newly created L1.

NativeTokenRemote Contract on myblockchain

forge create --rpc-url myblockchain --private-key $PK lib/avalanche-interchain-token-transfer/contracts/src/TokenRemote/NativeTokenRemote.sol:NativeTokenRemote --constructor-args "($TELEPORTER_REGISTRY_L1, $FUNDED_ADDRESS, $C_CHAIN_BLOCKCHAIN_ID_HEX, $USDC_HOME_C_CHAIN, 6)" "USDC" 100000000000000000000 0

Note: When deploying the NativeTokenRemote contract on the L1, ensure that the initial amount matches the native token amount that was minted when the blockchain was created. This ensures consistency between the native token supply and the remote token counterpart.

export NATIVE_TOKEN_REMOTE_L1="Deployed To Address"

Granting Native Minting Rights to NativeTokenRemote Contract

To ensure that the NativeTokenRemote contract can mint native tokens on the L1 when USDC tokens are transferred from the C-Chain, the contract must be granted minting rights. This is done by adding the NativeTokenRemote contract address to the Native Minter Precompile.

You will need to interact with the Native Minter Precompile, which resides at a fixed address on all Avalanche L1s:
Native Minter Precompile Address: 0x0200000000000000000000000000000000000001
Use the following command to grant the NativeTokenRemote contract minting rights by setting it as an enabled address on the Native Minter Precompile:

cast send --rpc-url myblockchain --private-key $PK 0x0200000000000000000000000000000000000001 "setEnabled(address)" $NATIVE_TOKEN_REMOTE_L1

$NATIVE_TOKEN_REMOTE_L1: The deployed address of the NativeTokenRemote contract on your L1.

Once this step is completed, the NativeTokenRemote contract will have the necessary permissions to mint native tokens when USDC tokens are transferred from the C-Chain.

Register Remote Token with Home Transferer

cast send --rpc-url myblockchain --private-key $PK $NATIVE_TOKEN_REMOTE_L1 "registerWithHome((address, uint256))" "(0x0000000000000000000000000000000000000000, 0)"

Collateralize and Transfer Tokens

Add collateral to the transferer contract on the home chain, and then send the USDC tokens across chains.

Approve Tokens for Transfer
Approve a certain number of tokens to be used by the Home Transferer.

cast send --rpc-url local-c --private-key $PK $USDC "approve(address, uint256)" $USDC_HOME_C_CHAIN 2000000000000000000000

Add Collateral and Send Tokens
Add collateral to the transferer contract.

cast send --rpc-url local-c --private-key $PK $USDC_HOME_C_CHAIN "addCollateral(bytes32, address, uint256)" $L1_BLOCKCHAIN_ID_HEX $NATIVE_TOKEN_REMOTE_L1 100000000000000000000

You can also confirm whether the Transferer is collateralized now by running the below command:

cast call --rpc-url myblockchain $NATIVE_TOKEN_REMOTE_L1 "isCollateralized()(bool)"

Send tokens to the L1

cast send --rpc-url local-c --private-key $PK $USDC_HOME_C_CHAIN "send((bytes32, address, address, address, uint256, uint256, uint256, address), uint256)" "(${L1_BLOCKCHAIN_ID_HEX}, ${NATIVE_TOKEN_REMOTE_L1}, ${FUNDED_ADDRESS}, ${USDC}, 0, 0, 250000, 0x0000000000000000000000000000000000000000)" 1000000000000000000000

Check Balance

cast balance --rpc-url myblockchain $FUNDED_ADDRESS

Conclusion

Follow the steps above to transfer a USDC token from the C-Chain to your custom Avalanche L1 and use it as the native token. This exercise will demonstrate how Avalanche’s Interchain Token Transfer (ICTT) system works, ensuring that tokens are properly locked, transferred, and minted across multiple chains.

For more detailed information, refer to the official Avalanche ICTT documentation.