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A subsequent mint process is initiated on the vacation spot L2 and funds are sent to the user. The settlement course of includes transferring DAI from the L1 Bridge to the TeleportJoin mechanism to resolve any accrued debt. A subsequent mint process is initiated on the L1 as users query the Oracle Network for an attestation and provide it to the Oracle Fast Withdrawal contract.
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As a end result, the consumer’s funds are burned on the supply chain and minted on the vacation spot chain. Consequently, MakerDAO determined to leverage its distinctive position in the multi-chain ecosystem to supply low-cost access to DAI across chains by controlling the narrative across the DAI model and guaranteeing fungibility. Therefore, any uncertainties surrounding Circle’s operations can doubtlessly end in temporary disruptions or delays in facilitating cross-chain transfers via CCTP. The burn event of USDC on the source chain must be verified by Circle’s attestation service in order to authorize minting of USDC on the vacation spot chain. The specified USDC amount is minted on the destination chain (Chain B) and despatched to the recipient wallet tackle.
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