How to Convert a USDC Loan Into USD

Background

DeFi protocols such as Compound don’t lend USD directly as they can only lend assets that exist on the Ethereum network. However, borrowers can borrow USDC, which is a stablecoin redeemable 1:1 with USD. This means Rocko users can borrow USDC from Compound and easily convert it into USD to use for things like real estate purchases, paying expenses, and more.

Follow the steps below to convert a USDC loan into USD using an exchange

In order to easily convert your loan from USDC to USD, please ensure you have an account at an exchange such as Gemini or Coinbase.

On the first page of loan set up, please select USDC as the asset you wish to borrow. Proceed through the loan set-up process and once you land on the loan summary, scroll down to where you choose the destination address for your loan. The destination address is where your loan will be sent.

If you have a Coinbase account and the transaction amount is less than $10,000, you can sign in and provide permission for Rocko to read your wallet addresses in order to determine where the USDC loan should be sent. If you don't have a Coinbase account or the transaction amount is greater than $10,000, please select “Other Exchagne or Wallet Address”. You’ll need to log into your exchange account and manually input the wallet address where you wish to receive the loan.

Once your loan is finalized, your Rocko smart wallet will automatically fulfill your loan and deliver the USDC loan to your specified wallet address. Log into your exchange account and sell/convert it to USD. Please be aware that some exchanges may charge a fee for this transaction. Once the USDC has been converted to USD, you can withdraw it to your linked bank account.

Please be aware that when repaying your loan, you will need to provide USDC. Learn more about repaying a loan here.