Lighter Collaborates with Circle to Distribute Yield from USDC Deposits on Its Platform
- Partnership Announcement: Perp DEX has partnered with USDC issuer Circle to enhance their platform's offerings.
- Interest Generation: The collaboration aims to share the interest generated from approximately $9.2 billion in USDC deposits on the platform.
Trade with 70% Backtested Accuracy
Analyst Views on CRCL
About CRCL
About the author

Software vs. AI: The article discusses the ongoing competition between traditional software and artificial intelligence, highlighting that software is struggling to keep up with advancements in AI technology.
Impact on Industries: The rise of AI is transforming various industries, leading to a shift in how tasks are performed and potentially displacing traditional software solutions.
Future of Development: As AI continues to evolve, the future of software development may increasingly rely on integrating AI capabilities, changing the landscape of programming and application design.
Challenges for Software: The article emphasizes the challenges faced by software developers in adapting to the rapid changes brought about by AI, which may require new skills and approaches to remain relevant.

- Partnership Announcement: Perp DEX has partnered with USDC issuer Circle to enhance their platform's offerings.
- Interest Generation: The collaboration aims to share the interest generated from approximately $9.2 billion in USDC deposits on the platform.
- Market Value Comparison: USD Coin boasts a market cap of $73.3 billion, making it the second-largest stablecoin globally, while Ripple USD's market cap is only $1.5 billion, ranking ninth, highlighting significant differences in market acceptance and investor confidence between the two.
- Transparency and Security: USD Coin is backed 1:1 by U.S. dollars and short-term Treasuries, with regular independent audit reports ensuring its transparency and security, whereas Ripple USD relies on the reputation of multiple issuing gateways, introducing certain risks.
- Investor Preference: For most conservative investors, USD Coin is viewed as the superior choice due to its straightforward structure and independence from individual issuers, while Ripple USD's decentralized, trust-based model, although innovative, may lead to less stability.
- Use Cases and Yields: The rapid cross-border transfer capabilities and yields exceeding traditional bank savings make stablecoins particularly valuable in hyperinflationary countries, with both USD Coin and Ripple USD catering to different investor needs, especially for privacy-conscious users.
- Market Environment Analysis: With the cryptocurrency market experiencing significant declines, Bitcoin has fallen over 25% in 2026, prompting investors to seek potential safe haven assets, leading to increased interest in stablecoins like USDC due to their 1:1 redemption feature for USD.
- Stability of USDC: Designed to maintain its value, USDC's long-term average price converges to $1, despite minor fluctuations, making it appear relatively safe in the current market environment.
- Yield Potential: Investors can generate yields on USDC holdings, particularly on decentralized finance platforms, where some, like Coinbase, offer yields as high as 10%, significantly exceeding traditional bank deposit rates.
- Investment in Related Companies: Circle Internet Group, the creator of USDC, has future revenues closely tied to USDC's growth, making investments in Circle or Coinbase a way for investors to capitalize on the potential upside associated with USDC's future growth.
- Market Value Plunge: Strategy Inc. has seen its market value drop by approximately 70% from October 2025 to February 2026, contrasting sharply with Bitcoin's 50% decline, highlighting the company's vulnerability in the cryptocurrency market and potentially undermining investor confidence.
- Software Stocks Decline: The iShares Expanded Tech Software ETF fell every trading day for eight sessions leading up to February 5, 2026, marking its worst streak since March 2020, with software stocks down roughly 30%, reflecting dual concerns over both software and cryptocurrency markets.
- Liquidity Risk Intensifies: As capital markets tighten, investors are increasingly worried that Strategy may be forced to sell Bitcoin, with current market expectations of a 26% chance of this occurring, which could jeopardize the company's position as the largest Bitcoin holder and impact its future strategy.
- Eroding Market Confidence: Economist Ed Yardeni has adopted a bearish view on Bitcoin, suggesting that recent legislation undermines its transactional utility and exposes weaknesses as a store of value, further exacerbating uncertainty surrounding Strategy's market position.
- Partnership Announcement: Circle Internet Group has partnered with Polymarket to transition the prediction marketplace to native USDC stablecoin for dollar-denominated settlements in the coming months, marking a significant shift from Bridged USDC and enhancing transaction transparency and reliability.
- Standardization of Settlements: This move supports a consistent dollar-denominated settlement standard, which enhances market integrity and reliability, and is expected to attract more users as participation on the platform continues to grow.
- Stablecoin Market Position: USDC, currently the second-largest stablecoin with a market cap of $70.7 billion, while still trailing behind Tether's $185.4 billion, is gaining increasing importance in the crypto market.
- Industry Impact: Polymarket's CEO Shayne Coplan stated that partnering with Circle is a crucial step in strengthening prediction markets, highlighting the importance of stablecoin infrastructure and potentially driving further development across the industry.









