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

If you have a Coinbase account in the U.S., you can automatically receive your loan in USD when using Rocko by selecting USD as the asset you wish to borrow. You can learn more about this process here.

For all other U.S. exchange users, such as those with an account on Gemini or Kraken, 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.

Please select “Other Address”. You’ll need to log into your exchange account and manually input the wallet address that 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 account. 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.