$USDC, CIRCLE's Perp DEX "Circle invests in Perp DEX / Revenue Shares are lobbyists seeking their own profit" Lighter $920M USDC revenue share, strategic investment in EdgeX 1. Circle's essence = T-bill interest business - 99% of $1.7B in revenue is USDC reserve interest. After a 50:50 share with Coinbase, actual receipts are $768M - Possible deficit if the Fed cuts rates by 150bp. They're not making as much money as you might think - Survival formula: USDC circulation × on-chain residence time 2. Why Perp DEX? - Perp DEX cumulative trading volume by 2025 is expected to be $7T+. Leverage allows for dozens of times more trading volume compared to the same TVL. - Long-term lock-up of collateralized USDC → Secures stable reserve interest. Lighter $920M, ~$37M per year. Even with revenue sharing, it's still a structure where you pay for market share. 3. Why are they suddenly giving it away when they were already getting it for free? - Originally, Lighter $920M USDC → Only Circle earns interest, while Lighter receives zero. - However, with the emergence of various stablecoin pairs and regulated stablecoins, $USDC must find its own survival strategy. - Deals are available everywhere where $USDC has a significant presence (extending what was originally a natural practice on CEXs to perp DEXs). 4. Why the timing for regulation is now. - CLARITY Act: The biggest issue is whether to allow stablecoin yields. Banks completely ban them, while cryptocurrencies oppose. - USDC in perp DEXs = Trading activity linked → Minimizes regulatory risk regardless of the direction. - Bypassing the interest ban imposed by the bank lobby with the perp DEX structure. 5. Preemptive Defense Against USATs - Tether USAT launched (January 27). CEXs immediately enter head-on competition. - However, perp DEXs have high conversion costs due to USDC being embedded as native collateral. - Preemptive revenue sharing allows for infrastructure to be built before penetration.