Are you still afraid to hold large amounds in USDC ?

[brianK]

It’s been about a year since I read a thread here on OCT where some users mentioned that USDC could be frozen by authorities, and that the first several thousand wallets had already been frozen or seized.

However, I haven’t really been able to find anything recent or concrete about it.

Do you guys still consider it too risky to hold, say, $500K to $1M in USDC?

 

[void]

It’s been about a year since I read a thread here on OCT where some users mentioned that USDC could be frozen by authorities, and that the first several thousand wallets had already been frozen or seized.

However, I haven’t really been able to find anything recent or concrete about it.

Do you guys still consider it too risky to hold, say, $500K to $1M in USDC?

if "holding" means any period longer than necessary to process a transaction on stablecoin rails then it's risky - why would anyone do that?

 

[wellington]

It’s been about a year since I read a thread here on OCT where some users mentioned that USDC could be frozen by authorities, and that the first several thousand wallets had already been frozen or seized.

However, I haven’t really been able to find anything recent or concrete about it.

Do you guys still consider it too risky to hold, say, $500K to $1M in USDC?

USDC is less 'frozen' than say USDT, this is simply because Tether falls in line with Governments and doesn't challenge, they even have Feds with direct access to their systems and freezing capabilities.

Whereas USDC is a US Domestic company, and that means all freeze processes have to go through a due process and via a court order, not a phone call.

DAI is predominantly backed by USDC but isn't freezable perse on a individual basis.

However -> unless you are involved in a crime its likely not to be frozen - i even contacted Tether years ago after 50k was drained and converted to USDT and they were blase telling me to get a police report lol, by which point the funds would be gone, Tethers now changed its approach, Circle hasn't.

 

[brianK]

What I mean is keeping my funds in USDC rather than in some other highly volatile crypto. I’ve been reading a lot about DAI, some claim it’s the safest compared to USDC and USDT, but I’m not completely sure.

The funds will be sitting still for a few months, and I need to be certain that the full amount is available when it's time to make the investment.

 

[jorge]

keep it in DAI after reading OCT

 

[legrant]

Deposit it into AAVE, have it wrapped, or use USDS (new DAI).

Depositing into AAVE you generate yield, but also you hold a new token that represents the AAVE USDC (aUSDC/avUSDC), which cannot be frozen, and the original USDC are pooled into the lending system.

Having it wrapped pools the USDC with others and you have a token that represents the underlying asset, in this case, USDC, and it can't be frozen.

USDS is the new DAI, you can get it by depositing USDC at a 0% fee, and it cannot be frozen.

 

[plotoffshore]

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Wow, I’ve got to admit, I don’t understand a thing about what you’re explaining. I get that you’re suggesting another crypto coin, but how all of that is supposed to work is totally beyond me.
I think this definitely calls for a beginner friendly guide!

For example, can what you’re suggesting be stored on a Ledger or Trezor wallet? That’s what I personally use.....

 

[legrant]

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Wow, I’ve got to admit, I don’t understand a thing about what you’re explaining. I get that you’re suggesting another crypto coin, but how all of that is supposed to work is totally beyond me.
I think this definitely calls for a beginner friendly guide!

For example, can what you’re suggesting be stored on a Ledger or Trezor wallet? That’s what I personally use.....

First, AAVE is a decentralized lending protocol that as of right now has around $20B worth of coins on it (collateral, deposits, etc), that's why I said this one and not another one. You can deposit your USDC on it, which gives you a new token called avUSDC (may vary depending on blockchain), which is a yield bearing token of the USDC you originally deposited and can be swapped back to USDC at any time. avUSDC cannot be locked/frozen, and the underlying USDC is pooled/lent out, so while it can be frozen, it makes no sense to freeze as it'd freeze the whole protocol. So doing this you protect your USDC from being frozen, but at the same time you risk it by lending it out, possible protocol vulnerabilities, etc.

USDS is a token that is backed by other assets such as BTC, ETH, USDT, USDC, etc, generally stable assets as well as some real world assets like bonds. It has a value of $1 and it has a whole system behind it to keep it there, however, there's always risk of failure although it is very unlikely. You can swap your USDC for USDS at 0% fee (just gas fees) using their website, and USDS as far as I know cannot be frozen. It can be swapped back to USDC at any time too, and even convert it to sUSDS which is made by the same people and yields 4.5%.

Ledger's and Trezor's just store a key, you can store any token on them, maybe not natively on their own applications, but using Metamask or Rabby, you can add anything.

 

[plotoffshore]

That was an absolutely fantastic and detailed explanation, really helpful and something I can actually work with.

I’ll see if I can figure out how to store my tokens on one of these devices using MetaMask.
Honestly, I used to think they were some kind of scam.

 

[legrant]

That was an absolutely fantastic and detailed explanation, really helpful and something I can actually work with.

I’ll see if I can figure out how to store my tokens on one of these devices using MetaMask.
Honestly, I used to think they were some kind of scam.

Be really careful with what you do though, a single wrong contract interaction or malicious signature can make you lose pretty much everything you have on that wallet. I'd usually fully go against doing this (for safety reasons), but if you need help, DM me. Whatever you may ask me, confirm with others before/after, and use google too just in case