What is USDC?
On Conio it is possible to buy and sell USDC at the market price, however, it is not yet possible to withdraw and deposit USDC.
USDC (USD Coin) is a stablecoin that aims to maintain its stable value against the U.S. dollar designed to have a stable value, making it useful for transactions, payments, and decentralized applications (DeFi).
Each USDC in circulation is backed by one U.S. dollar or equivalent assets, such as U.S. treasury bonds, held at regulated financial institutions in the United States. The coin is usable on multiple blockchains, including Ethereum, Solana and Algorand. USDC is often used in fund transfer transactions and trading, serving as a safe-haven asset during periods of significant volatility in the cryptocurrency market.
Launched in 2018 as a response to the growing demand for stablecoins in the cryptocurrency market, its creation was driven by the need to have a stable and transparent coin in the cryptocurrency world. Since then, USDC has become one of the most popular and widely used stablecoins.
Due to the fact that USDC is a stablecoin, it doesn't have its own consensus mechanism such as proof-of-work or proof-of-stake, but relies on the blockchain it operates on. Trust in USDC is based on the fact that the institutions that issue it maintain a 1:1 reserve with the U.S. dollar. This reserve is subject to regular audits by independent auditing firms to ensure transparency and trust in stablecoin.
Unlike other cryptocurrencies, USDC is not "mined." It is issued or destroyed based on supply and demand. When a user buys USDC, a new USDC is created, and when they redeem it for U.S. dollars, the token is destroyed.
In the context of DeFi applications, USDC has become an essential tool for loans, exchanges, and other decentralized financial activities. Its stability and reliability have made it a popular choice for DeFi users and developers.
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