Compound USD Coin (CUSDC) is a US dollar-denominated stablecoin that is distributed to the users of the Ethereum-based crypto lending protocol Compound. The platform allows users to earn CUSDC for lending USDC and enabling others to borrow the stablecoin.
This article is a guide to the CUSDC coin, where we will explain what the token is and how it works. We shall also take a look at the cryptocurrency’s future price projection before determining whether it is a credible crypto investment for you to make.
So, without further ado, let’s get started.
What is the Compound USD Coin (cUSDC)?
Compound USDC, or CUSDC in short, is the token that is distributed to users who provide liquidity in the form of USDC stablecoin to the crypto lending protocol Compound. CUSDC is offered as a reward to those who supply USDC to the decentralized finance (DeFi) protocol’s liquidity pools.
CUSDC has a maximum supply of 2.794 billion tokens and all of them are currently in circulation. The cryptocurrency has a market cap of $66.67 million and attained a 24-hour trading volume of just $30.5.
Additionally, Compound users who hold CUSDC can borrow its equivalent value in USDC. To understand how cUSDC works, we need to get a grasp of how assets are supplied and borrowed from Compound.
How to Supply Assets to Compound?
On Compound, developers can build a multitude of innovative DeFi products, and regular users can contribute their cryptocurrencies to large liquidity pools for others to borrow from in exchange for a share of the interest payments.
Users can simply visit Compound and pick the asset they want to borrow from the list of supported cryptocurrencies. The platform’s mint function then transfers the tokens into Compound, and they start accumulating interest.
Assets supplied by users to the platform can be used as collateral once they enter the market to borrow another asset. Tokens supplied as collateral earn interest as long as they are in one of the Compound pools. However, users can’t redeem their tokens if they are in the collateral state.
How to Borrow From Compound?
To borrow cryptocurrencies from Compound, users need to first deposit a different type of cryptocurrency supported by the platform. The asset that users deposit as collateral determines the amount they can borrow.
It is important to note that different tokens on a Compound might possess varying collateral factors. These factors can be changed by Compound’s governance.
How Does cUSDC Work?
CUSDC are coins distributed to users who lend USDC to Compound. Lenders can earn rewards in CUSDC by supplying the platform with USDC to support it. CUSDC is the reward that is paid by the USDC pool to the lender.
CUSDC holders can exchange them for other cryptocurrencies supported by the Compound lending protocol.
cUSDC Price Prediction: 2024, 2025, 2026, 2027, and 2030
At the time of writing, CUSDC is trading at $0.02387 – up 0.1% in the last 24 hours.
Based on its current valuation and market demand, here is how we think CUSDC will perform through 2030.
| YEAR | MINIMUM PRICE | MAXIMUM PRICE |
| 2024 | $0.006943 | $0.01587 |
| 2025 | $0.01455 | $0.02347 |
| 2026 | $0.01604 | $0.02893 |
| 2027 | $0.0167 | $0.02149 |
| 2030 | $0.009588 | $0.02761 |
Where to Buy cUSDC Tokens?
CUSDC can only be purchased from the Ethereum-based lending protocol Compound. The cryptocurrency is mainly offered as a reward to users who lend USDC stablecoin to the platform.
Is Compound USD Coin (cUSDC) a Credible Cryptocurrency Project?
Compound USDC (CUSDC) is a cryptocurrency that is specific to the DeFi crypto lending protocol Compound. The token is given as a reward to users who lend their USDC holding to the platform in order to support its liquidity pool.
CUSDC does not maintain parity with the dollar and hence it is not a stablecoin nor is it equivalent in value to the underlying asset. It is simply a token for a Compound that acts as a reward token for supported cryptocurrencies, in this case, the USD Coin.
Compound is a credible decentralized cryptocurrency lending platform on Ethereum, and hence its cUSDC token can be regarded as a credible digital currency.
However, as is the case with every other crypto asset, CUSDC is also prone to extreme price fluctuations. Therefore, it is recommended to conduct thorough research before making any investment decision.
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