USD Coin (native Base)

USDC

USDC is a centralized stablecoin backed by USD reserves held by a licensed custodian (Circle).

Risk Rating
Best
What is USD Coin (native Base)?
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
USDC transferred through the Base bridge requires more trust assumptions as it depends on a centralized sequencer that can control the ordering of transactions. Further, 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.

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Information
Blockchain
  • Base
Info
  • Asset Type: ERC-20
Key Metrics
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.

Dependencies

USD Coin (native Base) has no dependencies.

Asset Tokenomics

USDC does not have a supply schedule. USDC on Base is backed 1:1 by USDC locked in the Base bridge on the Ethereum chain. USDC 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.

Things to know about USDC

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?

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 trasnferred on-chain.

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USDC Pools
Aerodrome ETH-USD Market Making
17.4%
Yield
$28M
TVL
Risk
C
Protocol
Aerodrome
Chain
Base
Moonwell USD Lending
13.8%
Yield
$7M
TVL
Risk
B
Protocol
Moonwell
Chain
Base
Beefy-Compound USD Lending
11%
Yield
$7M
TVL
Risk
B
Protocol
Beefy
Chain
Base
Harvest-Moonwell USD Lending
19.6%
Yield
$4M
TVL
Risk
C
Protocol
Harvest
Chain
Base
Compound USD Lending
12.1%
Yield
$1M
TVL
Risk
A
Protocol
Compound V3
Chain
Base
Arcadia USD Lending
19%
Yield
$458K
TVL
Risk
C
Protocol
Arcadia
Chain
Base
Beefy-Aerodrome ETH-USD Market Making
66.8%
Yield
$25K
TVL
Risk
C
Protocol
Beefy
Chain
Base
Beefy-Aerodrome BTC-USD Market Making
15.2%
Yield
$11K
TVL
Risk
C
Protocol
Beefy
Chain
Base

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