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.

The name "Carbon" is a legacy codename and no longer means anything.

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 it's current price and is engineered to peg the coin to 1 USD eventually. As CDPs are always over-collaterized, depegging should not last for long periods of time. Read more about the interest rate model here.