The ERC-20 Ethereum standard is used by simple tokens such as cUSDC. They are a representation of the currency that has been put into the Compound liquidity pool. The token itself does not hold any value – it only represents the actual USDC that Compound is holding. You can think of cUSDC as a receipt for your money on deposit or as a digital wallet.
How does the cUSDC token work?
cUSDC are ERC-20 tokens. Anyone who holds them earns the prevailing market interest. Interest payments are not remitted to cToken holders but are expressed via the cTokens exchange rate. The number of cTokens in your wallet stays the same, but you can trade them for an increasing amount of their underlying asset USDC over time.
Every USD token represents one US dollar on deposit with Compound. There is no limit to how many tokens you can hold. If you want to cash out, you sell your tokens on the open market and ultimately receive your US dollars back. You don’t have to find someone else who wants to buy them – every USDC, and thus cUSDC, is supposed to be backed by one real dollar. Anyone seeking access to US dollars in the Compound liquidity pool in return for a better interest rate can purchase them from you.
How to Buy cUSDC Tokens
To buy cUSDC tokens, you’ll need an ERC-20 compatible wallet. cUSDC is bought in the same way as most other currencies – it can be found on online exchanges like Binance, Coinbase Pro, and Bittrex.
The easiest way to buy cUSDC is by using the Coinomi app. It’s an intuitive wallet that allows you to safely store your credit cards and bank accounts all in one place. From there, it takes just a few taps to purchase cUSDC with your other currencies (like USD), and this transaction is instantly recorded on the blockchain.
How to Use cUSDC Tokens
Using your cUSDC tokens is just as easy as buying them. Since they’re merely an ERC-20 token, you can use any wallet that’s compatible with the Ethereum blockchain – including MyEtherWallet or MetaMask. After transferring your funds into the wallet, you can then use cUSDC to purchase anything that accepts the currency.
The great thing about cUSDC tokens is that they’re not limited to just cryptocurrency purchases – you can also use them at stores and other places that accept USD currency. The best part is, you’re still spending US currency without risking your funds or needing to exchange it every time you need to use it.
For example, you can use cUSDC tokens at Coinstar vending machines. This allows you to get cashback for your USDC purchases without the stress of having to watch out for scammy ATM companies or credit card issues.
History of cUSDC
cUSDC was created as a way to make USDC more accessible for new users. It makes it easier to get started with decentralized digital currencies, and its value is tied to the US dollar, so you can store your money without losing any of its value.
In November of 2018, cUSDC tokens were launched by TrustToken. It was a way to help their users get started with USDC simply and securely. The cryptocurrency is fully compliant with the ERC-20 standard, and it makes buying USDC much easier for beginners.
cUSDC is an open-source project, and its code has been completely public since its launch. It’s a way to help the public become more educated about cryptocurrencies, blockchain technology, and how to use them in their daily lives.
In conclusion, cUSDC is an excellent way to get involved with USDC without compromising your safety or losing money. It was created to make it easier for beginners and still provides all of the benefits of decentralized digital currency. It can be used on any dapp that accepts USDC, and its value is tied to the US dollar.
cUSDC is easy to use and fully transparent, and it allows anyone with basic technological literacy to learn how to use cryptocurrency.
What’s the difference between cUSDC and TrueUSD?
cUSDC and TrueUSD have a bit of a shared history. TrueUSD is a fully collateralized USD-backed cryptocurrency that aims to provide you with 100% transparency. To do so, TrueUSD requires KYC and AML verification from all of its users. cUSDC, on the other hand, allows you to buy and sell USD-backed cryptocurrency without any of those requirements.
In short, this means is that cUSDC gives you a way to transact with USD in a simple and decentralized manner without compromising your personal information. TrueUSD aims to do something similar but still requires KYC/AML verification.
What is compound cUSDC?
Compound cUSDC is a standard for collateralized cryptocurrencies that are implemented on the Compound Protocol. The beauty of this protocol is that it allows you to earn interest on your cryptocurrency by lending it out to other users. This doesn’t mean you can lend your USDC, but instead, it means you’ll be able to earn compound interest on your USDC. This is something that cUSDC does not currently offer at this time, but it may in the future due to the Compound Protocol.
What Makes cUSDC Different from Tether?
Tether (USDT) is another USD-backed cryptocurrency that’s often in the news. Unlike cUSDC, Tether has no legal backing behind its USD reserves. This means that it can’t do anything to protect your money in the event of a bank run or any other type of collapse. Additionally, advocates for Tether have repeatedly called into question the company’s transparency and have raised concerns about whether or not Tether has enough funds to back its currency.
What are the risks of investing in cUSDC?
cUSDC offers users a secure and decentralized currency, but it’s important to note that the currency is still subject to market fluctuations. This means you could see different factors impact your investment in cUSDC. Examples of these factors include political uncertainty, changes in global trade policy, or any other event that could influence the price of cryptocurrency markets.
Can I mine cUSDC?
cUSDC isn’t mined like other cryptocurrencies, which means you won’t need to purchase mining equipment or spend money on electricity bills. cUSDC doesn’t rely on proof-of-work and instead is fully collateralized. This also means that there’s no currency inflation and that it can be relied upon as a secure investment opportunity.