Stablecoins and USDC

Most cryptocurrencies change in value every day, which makes them inconvenient for bookkeeping. Stablecoins are designed for exactly this: their price is pegged to a fiat currency like the US dollar, so 1 stablecoin always stays close to $1.

How USDC is issued and backed

USDC is issued by US company Circle. Institutions deposit US dollars with Circle, and Circle issues USDC at a 1:1 ratio. To redeem, Circle burns the corresponding USDC and pays back the equivalent in dollars.

Circle's reserves consist of cash and short-term US Treasury bills. It publishes regular reserve reports audited by a third-party accounting firm, which anyone can review.

Is it always exactly $1?

In almost all cases, USDC trades very close to $1, but not without exception. In March 2023, Circle had roughly $3.3 billion in reserves held at Silicon Valley Bank when that bank failed. USDC briefly fell to about $0.87. After US regulators announced depositor protection, the price recovered within days.

This example shows that stablecoins carry low but non-zero risk.

Why SleeplessNode prices everything in USDC

• Unified pricing: You can deposit BTC, ETH, or BNB. When funds arrive, the platform converts them to USDC at the live price and credits your balance. From that point, your balance is in USDC and does not move with the price of whichever coin you deposited.
• Clear settlement: Every AI Grid and AI Strategy cycle is invested, earned, and settled in USDC. The result of each cycle is straightforward to read.
• Convenient withdrawal: Withdrawals are paid in USDC, across multiple networks.