USD Coin (Native Avalanche)

USDC

USDC is a native asset to Avalanche issued by Circle. USDC is a centralized stablecoin backed by USD reserves held by a licensed custodian (Circle).

Risk Rating
Best
$1.00
-0.05%
Summary
What we like
Provides easy on-ramp and off-ramp to convert your USD into digital dollars that is backed 1:1 by underlying reserves.
What we like less
Greater centralization as Circle custodies the deposited USD and controls the minting and redemption of USDC. Open to censorship as Circle can blacklist any USDC address at will.
What it means for you
USDC is a highly liquid instrument to hedge your portfolio in volatile market conditions and also an easy way to put USD to work for you in DeFi.
Information
Blockchain
  • Avalanche
Key Metrics
  • Market Cap: $32.6B
  • Fully Diluted Valluation: $32.6B
  • FDV / MC: 1
  • Ranking inside Exponential (among stables): #2
  • Circulating Supply: 32,635,377,427
  • Total Supply: 32,643,307,433
  • Volume (24H): $4.7B
  • ATH: $1.17 (05/08/2019)
  • ATL: $0.88 (03/11/2023)
Risk Assessment
Best
Asset Strength

USDC is a large-cap, fully collateralized asset. This asset depends on a centralized entity for custody services.

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

Asset Tokenomics

USDC has an uncapped supply but has inflation control or burn mechanisms in place. USDC on Avalanche is backed 1:1 by USD reserves held with a licensed custodian (Circle). USDC is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.

Asset Volatility

USDC is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value. USDC is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.

Dependencies

USD Coin (Native Avalanche) has no dependencies.

Things to know about USDC

What is 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?

USDC are 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?

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 transferred on-chain.

How to buy USDC?

You can buy USDC on a reputable cryptocurrency exchange that lists the asset. Platforms like Binance, Coinbase, and Kraken are popular choices offering ease of use and robust security features. Sign up for an account on your chosen exchange. You'll need to provide some personal information and, in most cases, verify your identity to comply with regulatory requirements. Fund your exchange account using a bank transfer, credit card, or other cryptocurrencies, depending on the options provided by the exchange. Navigate to the trading section of the exchange, search for the USDC pair you want to trade (for example, USDC/USD or USDC/BTC), and enter the amount of USDC you wish to purchase. Review and confirm the transaction details. After purchasing, you can choose to keep your USDC in your exchange account, which is convenient for quick trading. Alternatively, for added security, especially for larger amounts or long-term holding, transfer your USDC to a personal cryptocurrency wallet.

USDC Pools
Benqi USD Lending
11.5%
Yield
$3M
TVL
Risk
C
Protocol
Benqi
Chain
Avalanche
Pangolin AVAX-USD Market Making
269.6%
Yield
$1M
TVL
Risk
B
Protocol
Pangolin
Chain
Avalanche
Beefy AVAX-USD Market Making
104.1%
Yield
$1M
TVL
Risk
C
Protocol
Beefy
Chain
Avalanche
Pangolin BTC-USD Market Making
450.9%
Yield
$29K
TVL
Risk
C
Protocol
Pangolin
Chain
Avalanche