USDC (USD Coin)
Definition
USDC (USD Coin) is a USD-pegged stablecoin used as trading and payout currency on Polymarket and other crypto prediction markets.
What is USDC?
USDC is a cryptocurrency stablecoin pegged 1:1 to the US dollar:
- 1 USDC = $1.00 USD (approximately)
- Issued by Circle: Regulated financial company
- Backed by reserves: Cash and short-term US Treasuries
- Redeemable: Can exchange for USD through Circle
Why Polymarket Uses USDC
Stability
- Avoids cryptocurrency price volatility
- Predictable value for trading and payouts
- Easy mental math (1 USDC = $1)
Blockchain Benefits
- Fast transactions (seconds)
- Low fees (pennies)
- Programmable (smart contracts)
- Global accessibility
Transparency
- On-chain verification
- Audited reserves
- Public supply data
How to Get USDC
Centralized Exchanges
- Buy on Coinbase, Kraken, Binance
- Withdraw to your wallet
- Bridge to Polygon if needed
DEX (Decentralized Exchange)
- Swap other crypto for USDC
- Use Uniswap, SushiSwap, etc.
- Ensure correct network (Polygon)
Direct Purchase
- Buy with credit card via MoonPay, Wyre
- Higher fees, instant delivery
- Convenience over cost
Peer-to-Peer
- Trade with other users
- Use caution, verify transactions
- Lower fees possible
Using USDC on Polymarket
Depositing
- Acquire USDC on Ethereum mainnet or Polygon
- Bridge to Polygon if needed (via Polygon Bridge)
- Connect wallet to Polymarket
- Start trading USDC for outcome tokens
Trading
- Buy outcome tokens with USDC
- Sell outcome tokens for USDC
- Prices in USDC (1 USDC = $1)
Withdrawing
- Sell positions back to USDC
- Disconnect or keep in wallet
- Bridge to mainnet if desired
- Cash out via exchange
USDC vs USD
Similarities
- Same value (≈ $1.00)
- Used for payments
- Stable price
Differences
| Feature | USDC | USD | |---------|------|-----| | Form | Digital token | Fiat currency | | Network | Blockchain | Banking system | | Speed | Seconds | Hours/days | | Fees | < $0.01 | $0-25+ | | Access | Global, 24/7 | Limited by banks | | Custody | Self-custody | Bank-custody |
Risks
Depeg Risk
- USDC usually = $1, but can vary slightly
- In crises, may trade at discount
- Circle's reserves are key
Smart Contract Risk
- Bugs in USDC contract (rare)
- Platform smart contracts
- Blockchain risks
Regulatory Risk
- Government restrictions possible
- Circle compliance changes
- Platform access limits
Blockchain Networks
USDC exists on multiple blockchains:
- Ethereum (main, highest liquidity)
- Polygon (Polymarket uses this)
- Solana, Avalanche, Arbitrum (others)
Important: Ensure you use Polygon USDC for Polymarket