# USC Stablecoin ## Introduction USC (Carbon USD), is Demex's native stablecoin that follows the battle-tested MakerDAO's Collateral Debt Position (CDP) model that mints the DAI stablecoin. This over-collateralization mechanism ensures that each USC is always backed by more than $1 worth of collateral. {% hint style="info" %} The name "Carbon" is a legacy codename and no longer means anything. {% endhint %} ## How It Works USC is backed by other digital assets that are put up for collateral to mint the USC tokens, on demand. USC tokens is minted when a lender collaterizes their lent assets, and mints USC. This is known as a collateralized debt position (CDP). The interest rate of USC is dynamic based on its current price and is engineered to peg the coin to 1 USD eventually. As CDPs are always over-collateralized, depegging should not last for long periods. Read more about the interest rate model here. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://guide.dem.exchange/earn/nitron-lend-and-borrow/usc-stablecoin.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.