What is cUSDC?
cUSDC (Compound USD Coin) is an ERC-20 token and symbolizes the crypto assets deposited and locked in the DeFi lending platform Compound. Community members lend the stablecoin USDC and get its interest-providing form termed cUSDC. Depositors don't gain interest returns directly. Their benefit is expressed by the cTokens exchange value. This means that with time cTokens become exchangeable. So users can swap them with a growing amount of their original assets. In the case of cUSDC the lender will get USDC. Meanwhile, the quantity of cTokens the wallet holds doesn't change. Like any other digital asset, cUSDC is a subject of transfers. It can be employed as collateral in different liquidity pools or traded for other digital currencies. Users can borrow up to 50-75% of their cTokens’ value, depending on the quality of the basic asset. The protocol enables adding or removing funds at any time, but if users' debt becomes undercollateralized, anyone can liquidate; a 5% discount on liquidated assets serves as a reason for liquidators.