- Main switch to USDS on xDAI bridge announced by Gnosis Chain.
- Migration scheduled for June 8, 2025.
- Requires ecosystem participants to integrate with new contract.
Gnosis Chain is set to update its xDAI bridge infrastructure by adopting USDS as the default Ethereum token on June 8, 2025.
This shift in token usage is significant for the Gnosis Chain, impacting transaction processes and ecosystem participation.
Gnosis Chain has revealed that the xDAI bridge will transition to USDS as its new default token on Ethereum, replacing the existing setup with DAI. The announcement comes from the Gnosis Chain’s official channels, indicating a coordinated project update. The decision requires all third-party applications to integrate with the new Bridge Router contract by the specified deadline.
“The migration involves swapping all the sDAI currently held by the bridge to sUSDS.” — Gnosis Chain Team, Official Announcement, Gnosis Governance Dashboard
The move to USDS as a default token may influence the project’s infrastructure and lead to financial changes for ecosystem participants. Integrating this shift requires technical adjustments from third-party applications before the June deadline for smooth functionality.
Community discussions around this token migration show concerns, particularly about potential liquidity issues. Some members question this switch to a centralized stablecoin without existing network effects, favoring more established tokens like USDT or USDC. The Gnosis community remains divided, debating the adoption of centralized tokens and the implications for liquidity and transaction stability.
The timing of this announcement may allow for a smooth transition, but the shift raises questions about long-term impacts on liquidity and stability within DeFi platforms. Historical patterns suggest that similar migrations have affected project dynamics in the past.
Anticipated outcomes include adjustments in transaction yields and potential rethinking of default token strategies, given historical debates over stablecoin usage. As plans progress toward the June implementation, stakeholders are focusing on strategic integrations to adapt to new operational frameworks effectively.
About the author
ETH Position Sees Largest Liquidation as Market Volatility Surges
$404M crypto liquidations in 24 hours, led by $10.63M ETH order.
Synthetix sUSD Expected to Reanchor by August End
Synthetix founder predicts sUSD will return to its $1 anchor by August 2025.
Fed Rate Cut Speculation Grows for September Meeting
In a pivotal moment for financial markets, Federal Reserve rate cut expectations have reached an all-time high for the September 2025 FOMC meeting.
LM Funding America Sells Bitcoin for Mining Expansion
LM Funding America sells 11 Bitcoin, boosts mining capacity, and increases revenue.
Total Crypto Market Cap Surpasses $4 Trillion Mark
Total crypto market cap surpasses $4 trillion, driven by institutional inflows and policy changes.
Carlyle Group Expands Position in Robinhood for Q2 2025
Carlyle Group's Q2 2025 Robinhood investment highlights institutional focus on fintech and digital assets.
Related
NEAR, AAVE & Cold Wallet’s 3,423% ROI: Best Crypto Investment?
Discover NEAR’s rebound, AAVE’s bullish move, and Cold Wallet’s huge ROI potential. See why this mix could be the best crypto investment today.
BlockDAG Tops Crypto Projects as Ethereum ETF Inflows and Ethena Rally Signal Strength
Discover how Ethereum’s $1B ETF inflows, Ethena’s 31% surge, and BlockDAG’s real-time leaderboard highlight market trust. With $373M raised, 25B coins sold, and 2,660% ROI since batch 1, BlockDAG shows lasting demand.
XRP to Hit $5.50 by 2026? Analysts Cite ETF Launch & Institutional Inflows
Analysts predict XRP could reach $5.50 by 2026, driven by a potential ETF launch and growing institutional investment in the cryptocurrency market.
BlockDAG Hackathon Draws 500+ Teams; Why It’s the Top Crypto to Buy in 2025
See why BlockDAG’s Hackathon, with 500+ developer teams building ahead of Mainnet, is boosting buyer confidence. With $371M raised, & 2,660% ROI since batch 1, it’s the top crypto to buy before launch.
Best Crypto Presale Projects: Cold Wallet, HYPER, T6900 & SUBBD
Discover the best crypto presale projects of 2025. Cold Wallet tops with $5.89M raised, followed by Bitcoin Hyper, TOKEN6900, and SUBBD’s unique models.
Cold Wallet’s 50x ROI Edge Over PEPE and BNB in 2025
From the Pepe (PEPE) coin rally prediction to the Binance Coin (BNB) future forecast, see why Cold Wallet’s 50x ROI and rewards model could decide which crypto will explode first.
Be the first to leave a comment