CM|May 09, 2026 00:24
USD1 is natively issued on Tempo and uses Chainlink's CCIP solution for bridging. Here's an interesting detail: this solution adopts a Burn and Mint mechanism. In contrast to the security issues previously seen with rsETH on LayerZero, which uses a Lock and Mint mechanism.
Not many people paid attention to this before, but the obvious risk with Lock and Mint is that it creates a 'pool' and generates a wrapped token.
To some extent, this leads to liquidity fragmentation. From a risk control perspective, issuing native assets on the target chain is much more manageable compared to wrapped tokens. In every aspect, this solution proves to be superior.
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