Review on USD Coin by Aman Arora
USDC prioritize token for DEFI Platforms
USDC is a digital form of US dollar which is also a ERC20 compatible token which makes USDC to easily integrated on crypto platforms for making payments Swapping and Store easily. As we all witness Cryptocurrency market often stay volatile most of the time as compare to any other traditional financial market. To cope up with volitality and preserve the token value one best option is Stablecoin which was often used as hedge against market uncertainty. Best available option is USDC and the reason behind using USDC is it is pegged into US dollar with 1:1 ratio and easily the most used Stablecoin on Defi Market.
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USDC probably one favorable choice for users for collateral lendings and borrowings on various platforms. One best way to utilize stablecoins is staking. As there is no risk of decreasing value when you use USDC but with Staking you can get interest for just keeping your USDC at exchange. It is relatively new concept and with not too many options and regulations, Staking still have very good future and option to use your savings in USDC to get good returns.
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Lending USDC is another good option because lending are usually overcollateralized and risk is low when you choose a reputed exchange with solid background and higher yields offer lendings, though it is always risky but since this concept is new but surely a big future with more amendments and regulization coming our way in the months to come.
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USDC Staking on decentralized platforms is relatively transparent because you always know how much funds have been locked in contracts. You must still use caution and invest only part of your savings and then probably can use profits for more returns. USDC already has a supply of 5B with market cap of $5B and 24 volume is close to 3B. Binance and Uniswap has been responsible for most of the volume with Uniswap toping wirh over 330M and As I mentioned USDC is easily the preferred choice for Decentralize platforms and Uniswap being the Dex platform and lot of liquid pools to choose from Uniswap for good USDC yields.
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Pros
- Best way to control crypto market volitality and make easy payments
- Easy to lend borrow and stake without any fear of loss of value
- Erc20 Compatibility makes it easy to store in compatible wallets
Cons
- Only way to earn is through lending and staking and generate passive income
- No matter even on case of collateralization Assets always have a risk of sale if value of collateral fall
