$USDC

USDC (USD Coin) is a stablecoin pegged to the US dollar, widely used in the cryptocurrency market. Here is a detailed introduction:

- Basic Information: USDC was launched in 2018 by Centre, a joint venture between Circle and Coinbase. It is a fiat-backed stablecoin, pegged 1:1 to the US dollar, meaning 1 USDC theoretically equals 1 US dollar. Its price is relatively stable, aimed at addressing the volatility of cryptocurrency prices.

- Operating Principle: When a user purchases 1 USDC with 1 US dollar, that dollar is stored in Centre's bank account, and 1 USDC is generated; conversely, when a user exchanges USDC back to US dollars, the corresponding USDC is destroyed. Additionally, when the market value of USDC deviates from 1 US dollar, arbitrageurs will buy and sell USDC to profit from the price difference, encouraging its price to return to 1 US dollar.

- Reserve Assets: Each circulating USDC is backed by 1 US dollar in cash or cash equivalents, such as short-term US Treasury bonds held by regulated US financial institutions. Circle updates the reserve information weekly and has it audited monthly by Grant Thornton LLP, providing a complete audit report to ensure the stability of the fund reserves.

- Technical Features: USDC natively exists on multiple blockchains such as Ethereum, Solana, and Avalanche, with good cross-chain compatibility, allowing transfers between different blockchain networks, facilitating users' access to various cryptocurrency application scenarios.

- Main Uses: It can serve as a bridge into the cryptocurrency market, allowing users to buy, sell, and transfer funds within the crypto ecosystem without cashing out to traditional banks; it is a commonly used token in the decentralized finance (DeFi) sector, used for providing liquidity to earn rewards or participate in lending and other financial activities; it can also be used for cross-border payments, which are faster and cheaper than traditional bank transfers, and some businesses accept USDC payments; furthermore, governments can use it to transfer relief funds and facilitate international donations.

- Market Position: It is currently the second-largest stablecoin in the market, only behind Tether (USDT), with a high market share and wide recognition, accepted by numerous cryptocurrency exchanges with substantial trading volume.

- Risks and Controversies: Although USDC claims that its assets are primarily cash or cash equivalents, the types of assets are not detailed, presenting a certain risk to transparency.