Compound USDC

CUSDC Price

About Compound USDC (cUSDC)

Compound USDC is a yield-bearing representation of USD Coin (USDC) within the Compound protocol, allowing users to earn interest while maintaining liquidity.

• Yield Generation: The token automatically accrues interest through an increasing exchange rate relative to the underlying USDC asset.
• Collateral Utility: Holders can use their cUSDC as collateral to borrow other supported cryptocurrencies on the Compound platform.
• DeFi Integration: As an ERC-20 token, it is compatible with a wide range of decentralized applications for further financial utility.

What Is Compound USDC

Compound USDC is a "cToken" that functions as a receipt for supplying USDC to the Compound protocol. When a user deposits USDC into the Compound market, they receive an equivalent amount of cUSDC based on the current exchange rate. This mechanism allows the protocol to aggregate liquidity into a single pool that can be utilized by borrowers.

Value moves through the system as borrowers pay interest on their loans. This interest is not distributed as new tokens but is instead added to the pool, causing the exchange rate of cUSDC to rise. Consequently, every cUSDC token becomes redeemable for a progressively larger amount of the underlying USD Coin over time. This "put to work" model ensures that suppliers earn passive income without needing to manually claim or restake rewards.

The system scales by incentivizing liquidity through algorithmically adjusted interest rates. As more users supply USDC, the interest rate may decrease, while high demand from borrowers causes the rate to increase, attracting further suppliers to the market.

What Makes Compound USDC Unique

• Continuous Compounding: Unlike traditional savings accounts, interest on Compound USDC is calculated and compounded every single Ethereum block.
• Frictionless Redemption: Users can redeem their cUSDC for the underlying USDC at any time, provided the market has sufficient liquidity.
• Protocol Governance: The parameters of the USDC market, such as collateral factors and interest rate models, are managed by a decentralized community of Compound governance token holders.
• Efficiency: By pooling assets, Compound eliminates the need for peer-to-peer negotiation, allowing for immediate supply and borrowing actions.

What Can You Use Compound USDC for?

• Passive Income: Holding cUSDC is a primary method for users to earn a floating interest rate on their stablecoin holdings.
• On-chain Borrowing: cUSDC can be locked as collateral to take out loans in other assets like Ethereum or Wrapped Bitcoin, enabling leveraged strategies.
• Liquidity Provisioning: The token can be used in other DeFi protocols, such as decentralized exchanges or yield aggregators, to earn additional rewards.
• Value Transfer: It serves as a way to transfer yield-bearing value between wallets without exiting the Compound ecosystem.

How Does Compound USDC Work?

Compound USDC operates through a series of smart contracts on the Ethereum blockchain. The core of the mechanism is the utilization ratio, which measures the percentage of supplied USDC that is currently being borrowed. This ratio is used to determine the interest rate for both borrowers and suppliers through a predefined mathematical model.

When a user interacts with the protocol to supply assets, they trigger the "accrue interest" function. This function updates the interest rate index for the market, which compounds the interest for every block since the last interaction. The protocol uses a "kink-type" interest rate model; once the utilization ratio reaches a certain threshold (the kink), the cost of borrowing increases sharply to discourage further borrowing and protect the pool's liquidity.

As an application utility token, cUSDC carries protocol service fees in the form of a reserve factor. A portion of the interest paid by borrowers is diverted to a reserve pool, which acts as a buffer for the protocol's security and insurance. Users must pay standard transaction fees on the Ethereum network to mint, redeem, or transfer the token.

Team Info and Investors

Compound was founded by Robert Leshner and Geoffrey Hayes, who launched the protocol in 2018 to establish a decentralized money market. The project was developed by Compound Labs, Inc., a technology company based in San Francisco.

The protocol received significant early backing from prominent venture capital firms in the blockchain space. Major investors include Andreessen Horowitz (a16z), Polychain Capital, Bain Capital Ventures, and Paradigm. In 2020, the team transitioned the protocol to a community-governed model, transferring control of the system to a Decentralized Autonomous Organization (DAO) composed of COMP token holders.

Where can you buy Compound USDC?

CUSDC tokens can be traded on decentralized exchanges. The most popular exchange to buy and trade Compound USDC is Curve (Ethereum), where the most active trading pair CUSDC/USDT has a trading volume of $36.59 in the last 24 hours.

What is the daily trading volume of Compound USDC (CUSDC)?

The trading volume of Compound USDC (CUSDC) is $50.10 in the last 24 hours, representing a 78.00% increase from one day ago and signalling a recent rise in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for Compound USDC (CUSDC)?

Compound USDC (CUSDC) reached an all-time high of $0.2209 and an all-time low of $0.006207. It’s now trading -88.50% below that peak and 307.80% above its lowest price.

What is the market cap of Compound USDC (CUSDC)?

Market capitalization of Compound USDC (CUSDC) is $8,680,800 and is ranked #- on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of CUSDC tokens (340 Million tokens are tradable on the market today).

What is the fully diluted valuation of Compound USDC (CUSDC)?

The fully diluted valuation (FDV) of Compound USDC (CUSDC) is $8,680,800. This is a statistical representation of the maximum market cap, assuming the maximum number of 340 Million CUSDC tokens are in circulation today. Depending on how the emission schedule of CUSDC tokens are designed, it might take multiple years before FDV is realized.

How does the price performance of Compound USDC compare against its peers?

With a price decline of 0.00% in the last 7 days, Compound USDC (CUSDC) is underperforming the global cryptocurrency market which is up 3.60%, while underperforming when compared to similar Ethereum Ecosystem cryptocurrencies which are up 12.70%.

How to add Compound USDC (CUSDC) to MetaMask?

Adding Compound USDC (CUSDC) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import CUSDC as a token. You can copy CUSDC’s contract address (0x39aa39c021dfbae8fac545936693ac917d5e7563) and import it manually, or if you've installed MetaMask's chrome extension, add CUSDC to MetaMask with one click on CoinGecko.

Add CUSDC to MetaMask.