DeFiChain USD Coin

dUSDC

dUSDC is a wrapped version of USDC that is compatible with the DeFiChain ecosystem. Every dUSDC is backed by 1 USDC locked on DeFiChain.

Risk Rating
Good
Summary
What we like
Provides easy on-ramp and off-ramp to convert your USDC into a DeFiChain-compatible version that is backed 1:1 by underlying reserves.
What we like less
dUSDC is backed by underlying USDC reserves that are held in custody with Cake DeFi (through BitGo) in addition to USD reserves (custodied by Tether), which increases centralization risks.
What it means for you
dUSDC is a non-volatile instrument to hedge your portfolio and also an easy way to put USD to work for you across DeFiChain.

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Information
Blockchain
  • DeFiChain
Info
  • Asset Type: DST
Key Metrics
Risk Assessment
Good
Asset Strength

dUSDC is a low-cap, fully collateralized asset. This asset depends on two centralized entities for custody services. This asset is exposed to the underlying risks of DeFiChain DEX, a protocol rated as Watch out.

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

Asset Tokenomics

dUSDC has an uncapped supply but has inflation control or burn mechanisms in place.

Asset Volatility

dUSDC is a low-cap, fully collateralized asset. This asset depends on a centralized entity for custody services. This asset is exposed to the underlying risks of DeFiChain DEX, a protocol rated as Risky. The asset has an uncapped supply but has inflation control or burn mechanisms in place.

Dependencies

DeFiChain DEX

Things to know about dUSDC

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 are issued by financial institutions and established fintech firms who have met its membership criteria.

How does USDC work?

dUSDC is exposed to two centralized entities. It is backed 1:1 by USDC reserves held with Cake DeFi (via BitGo). USDC is also 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 are sent to the user's on-chain address, while the deposited USD are held in reserve. The process for redeeming USDC for USD is just the reverse process.

How secure is USDC?

dUSDC is as secure as the risk management policies of Cake DeFi and BitGo. 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 amount of USD reserves are greater than the amount of USDC in circulation. Nonetheless, USDC has the ability to "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 trasnferred on-chain.

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dUSDC Pools
DeFiChain DFI-USD Market Making
9.4%
Yield
$210K
TVL
Risk
F
Chain
DeFiChain
DeFiChain USD Market Making
69.4%
Yield
$168K
TVL
Risk
F
Chain
DeFiChain

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