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5 752 116 €
202 010 094 842 CUSDC
202 010 094 842 CUSDC
Compound USD Coin (cUSDC) is a cToken obtained in return for a USDC deposit in one of Compound’s liquidity pools. By buying cUSDC you can also profit from the increased use of USD Coin (USDC).
Compound USDC, as applicable for other cTokens of the Compound platform, is a record of a digital US dollar, USDC, deposited on the Compound protocol. It follows the ERC-20 Ethereum standard. As you deposit USDC into the Compound liquidity pool, you receive the corresponding cUSDC tokens.
Founded and led by Robert Leshner, Compound is a DeFi protocol structured on a system of openly accessible smart contracts built on the Ethereum network. It facilitates borrowers to take loans and lenders to provide loans. Both the lenders and borrowers lock their assets into the protocol. Summarily, borrowers get to take loans at an interest rate determined by the supply and demand of the asset, whereas lenders get an opportunity to earn interest in exchange for the funds they inject. The platform generates an interest rate with each block mined, and borrowers can withdraw their collateralised assets by paying back the due at any time they want.
Although Compound, on the surface, appears to be a simple DeFi lending and borrowing protocol, where it stands apart is the use of cTokens. cTokens helps tokenise all types of crypto assets. While these tokens help earn interest, they also expand the functional value of the assets locked. Through cTokens, it becomes easier to transfer, trade, and move around assets for other applications. The usability of cTokens in other protocols makes it possible to combine different protocols as different building blocks. These blocks are called money legos.
The tokenised assets supported by the Compound protocol, or cTokens as they are referred to, come with a wide range of advantages. You can transfer it to anyone the same way you transfer other digital assets.
cTokens also imply tokenised deposit positions. Therefore, you can leverage them as collateral in other liquidity pools. You can exchange them for other assets as well.
There are DeFi dApps that automatically trade crypto assets driven by the principles of pre-programmed conditions. You can combine your cUSDC holdings with these trade algorithms and get double benefits. While you can still earn interest on the cTokens you hold, you also get the benefits of automatic trades.
With a total supply of more than 9.8 billion cUSDC coins, the price of cUSDC has been on a steady rise. If seen from the perspective of its yearly performance, the 52 week-high of cUSDC has been $0.0221 (~£0.016), whereas the 52 week-low has been $0.0209 (~£0.015). These two price points are indicative of the performance of cUSDC. The volatility in cUSDC prices has remained significantly lower than other crypto assets.
As far as obtaining cTokens is concerned, you can mint or create them using any Ethereum wallet such as MetaMask, Coinbase wallet, or Huobi. The only other thing you need to have is one of the crypto assets that you would deposit to the Compound liquidity pool, which in this case is USDC.
Apart from USDC, Compound offers cTokens for multiple other currencies. Irrespective of the currency you hold and wish to deposit in the Compound liquidity pool, whenever a market is launched the cToken exchange rate begins at 0.020000. This cToken exchange rate is determinant of how much USDC one cUSDC is worth. Commencing at a value of 0.020000, it increases at a rate equal to the compounding market interest rate.
Now when you decide to withdraw your funds, you redeem them at the then prevailing exchange rate. The increase in the exchange rate is the profit you earn by tokenizing your asset. To see your cTokens anytime you want, you can use the Etherscan blockchain explorer. It lists out the tokens associated with your address.
cTokens have been nothing less than a game-changer. It has made assets locked in DeFi lending or borrowing protocols more usable and versatile. Since the Compound protocol derives its cTokens from Ethereum as ERC-20 tokens, they serve as an earning tool. An asset to be traded and transferred, and provide utility when used in other dApps. You can exchange cUSDC outside of the Compound protocol the same way you exchange other ERC-20 tokens. You can control these cTokens the same way you do other digital assets on the Ethereum blockchain, leveraging your public and private keys.
While cUSDC, like other cTokens in its league, fuels the Compound protocol, it works as an appreciating asset for the holder. The longer you hold cTokens, the more it appreciates. Although, the interest rate varies with each asset that has a corresponding cToken.
Compound, as a protocol, has already gained traction with a total supply of more than 12 billion US dollars (~£8.88 Billion) in all its markets combined. The total borrowed amount has also crossed the volume of 5.5 billion USD (~£4.03 billion). This traction that Compound has earned over the years will have a positive impact on cUSDC. With more and more dApps coming into the market, cUSDC and other cTokens will expand in their utility value.