What Is USDC

USDC is a stablecoin. It is a cryptocurrency designed to always be worth $1.

Why Stablecoins Exist

Most cryptocurrencies like Bitcoin and Ethereum fluctuate in value. One day your Bitcoin might be worth $40,000, the next day $35,000. This makes them difficult to use for everyday transactions or investments where you want price stability.

Stablecoins solve this problem. They maintain a steady value, usually pegged to a traditional currency like the US dollar.

How USDC Works

USDC is issued by Circle, a regulated financial services company. For every USDC in circulation, Circle holds $1 in reserve. These reserves are held in cash and short-term US Treasury bonds.

When you buy 100 USDC, Circle holds $100 in reserve. When you redeem 100 USDC, Circle releases $100 from reserves.

Why OpenHouse Uses USDC

We use USDC for all transactions because:

• Stability: Your investment value does not fluctuate due to cryptocurrency volatility

• Speed: Transfers settle in seconds, not days like bank transfers

• Transparency: All transactions are visible on the blockchain

• Accessibility: Available globally without traditional banking barriers

• Low fees: Transaction costs are minimal compared to traditional finance

USDC vs Other Stablecoins

Several stablecoins exist. USDC is one of the most trusted because:

• Circle is a regulated US company

• Reserves are audited monthly by a major accounting firm

• It operates on multiple blockchains including Base (which OpenHouse uses)

• It has never lost its $1 peg

Getting USDC

You can get USDC by:

• Buying with a card through MoonPay (available in the OpenHouse app)

• Transferring from another wallet

• Converting from other cryptocurrencies on an exchange

Using USDC on OpenHouse

On OpenHouse, USDC is used to:

• Buy property shares

• Receive yield distributions

• Receive proceeds when you sell shares

Your USDC balance appears in your wallet. You can withdraw it anytime.

Is USDC Safe

USDC is considered one of the safest stablecoins because of its regulatory compliance and transparent reserves. However, like any financial instrument, it carries some risk:

• Circle could face regulatory issues

• A bank holding reserves could fail

• Smart contract bugs could affect the token

These risks are generally considered low, but they exist. USDC is not a bank deposit and is not FDIC insured.