$USC is a decentralized, over-collateralized Cosmos-native stablecoin. New tokens are issued through the use of autonomous smart contracts on the Carbon blockchain. $USC is backed by other digital assets that are put up for collateral to mint the $USC tokens, on demand.
$USC is available for minting via its native Nitron Money Market platform.
$USC is Cosmos-native and supports IBC tokens (e.g. ATOM, OSMO) as collateral. This makes $USC a secure, Cosmos-native stablecoin that can be used on other IBC-enabled chains securely (without having to rely on bridged stablecoins, which are often the target of exploits). As Carbon is inter-operated with Ethereum, BNB Smart Chain, Neo N3 and Zilliqa via Poly Network, $USC supports tokens from these chains as well. On top of these assets, other assets including decentralized stablecoins can be used as collateral to mint the $USC stablecoin, so long they are whitelisted as acceptable collateral via governance.
- Minting Fee: 0%
- Fixed Interest Rate: 1.5%
- Liquidation Fee: 10%
- Collateralization Ratio: Varies depending on the individual assets used as collaterals. As some assets have higher collateralization ratio and others lower, one’s collateralization ratio is a weighted average of all available collaterals.
- Supply Cap: 300,000
The power to propose and implement changes to such variables is granted, through code, to holders of the $SWTH token, that native token of the Carbon Blockchain. Owners of the $SWTH governance token are able to vote on proposed modifications in equal proportion to the amount of tokens they hold.
How to mint $USC?
Carbon users can lock in collateral on the Nitron platform to mint the $USC stablecoin, which can be subsequently redeemed by burning the stablecoin. The value of the collateral locked in the CDP needs to maintain a certain percentage of the stablecoin minted, usually around a 150% collateralized ratio (i.e. over-collateralized). This over-collateralization is important to prevent the CDP from being under-backed during periods of volatility, which may cause the stablecoin to be depegged.
For example, if you deposited $150 worth of ETH for collateral, you can mint 100 $USCHow can I earn $USC? $USC can be earned in two ways:
- Providing liquidity to liquidity pools on Demex. Becoming a liquidity provider earns rewards in a myriad of tokens being traded and borrowed, which includes $USC. Specifically, the $USC/$USDC is amplified by 200x, enabling users to swap $USC with $USDC without incurring much slippage. This sets $USC apart as an uncensorable, decentralized and secure Cosmos-native stablecoin with deep liquidity
- Staking $SWTH on CarbonHub. Staking $SWTH earns rewards in a myriad of tokens being traded and borrowed, which includes $USC.