Iron Bank (Yearn) USD Coin

cyUSDC

cyUSDC is an interest-accruing token that represents a USDC deposit in the Iron Bank lending market.

Risk Rating
Best
Summary
What we like
cyUSDC is an interest-accruing version of USDC. USDC provides easy on-ramp and off-ramp to convert your USD into digital dollars that are backed 1:1 by underlying reserves.
What we like less
cyUSDC is exposed to systemic risk of other assets on the Iron Bank lending platform. USDC also has greater centralization as Circle custodies the deposited USD and controls the minting and redemption of USDC.
What it means for you
cyUSDC offers you a great way to earn yield on your USD, while maintaining exposure to a highly liquid instrument to hedge your portfolio in volatile market conditions.
Information
Blockchain
  • Ethereum
Info
Key Metrics
Risk Assessment
Best
Asset Strength

cyUSDC is a large-cap, fully collateralized asset. This asset depends on a centralized entity for custody services. This asset is exposed to the underlying risks of Iron Bank, a protocol rated as Watch out.

cyUSDC is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.

Asset Tokenomics

cyUSDC has an uncapped supply but has inflation control or burn mechanisms in place. cyUSDC is a receipt of a USDC deposit in the Iron Bank lending protocol and accrues interest. USDC is backed 1:1 by USD reserves held with a licensed custodian (Circle).

Asset Volatility

cyUSDC is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.

Dependencies

Iron Bank

Things to know about cyUSDC

Who invented USDC?

USDC launched on the Ethereum mainnet in September 2018 as a partnership between Circle and Coinbase through the co-founding of the CENTRE Consortium. Customers on Coinbase with USD accounts can exchange 1 USDC for 1 USD and vice versa. USDC is issued by financial institutions and established fintech firms that have met its membership criteria.

How does cyUSDC work?

cyUSDC is a receipt of a USDC deposit in the Iron Bank protocol on Ethereum and accrues interest. USDC is backed 1:1 by USD reserves held with a licensed custodian (Circle). The process of minting USDC tokens involves interacting with CENTRE contracts which manage the minting and burning of USDC. First, a user sends USD to a licensed token issuer's bank account. Second, the issuer uses the USDC smart contract to mint an equivalent amount of USDC. Third, the newly created USDC is sent to the user's on-chain address, while the deposited USD is held in reserve. The process for redeeming USDC for USD is just the reverse process.

How secure is cyUSDC?

cyUSDC is exposed to the systemic risks of the Iron Bank lending protocol as a default in one asset market can have a contagion effect across the entire platform. USDC is a centralized stablecoin that is perceived as safer and more transparent than USDT as its reserve composition only consists of cash and short-term U.S. government bonds. USDC regularly undergoes audits and publishes monthly reserve reports and attestations that prove the number of USD reserves is greater than the amount of USDC in circulation. Nonetheless, USDC can "blacklist" any of its associated addresses at will. When a USDC address is blacklisted, it can no longer receive USDC and all of the USDC controlled by the address can no longer be transferred on-chain.

cyUSDC Pools
Curve USD Market Making
11.46%
Yield 30d
$5M
TVL
Risk
C
Protocol
Curve
Chain
Ethereum
Yearn USD Market Making
4.92%
Yield 30d
$1M
TVL
Risk
D
Protocol
Yearn
Chain
Ethereum