This guide is to help you understand the steps to repay a USDC loan with USD.

How to Repay a USDC Loan with USD


DeFi protocols such as Compound don’t lend USD directly as they can only lend assets that exist on the Ethereum network. This means if you converted your loan into USD (or another currency), you’ll need to convert it back into USDC in order to repay your loan.

Follow the steps below to convert USD or another fiat currency into USDC using an exchange.

If you already have USDC, skip to step 3 below. If your loan is in another currency such as USD, start with step 1.

  1. Transfer the funds you will use to repay your loan to your exchange account. You can do this by logging into your exchange account, linking a bank account, and depositing the funds. If you don’t have an exchange account, it’s easy to set up an account on Gemini or Coinbase.

  2. Once the funds have been deposited, purchase USDC in the amount of your outstanding balance plus some extra. It’s important to purchase extra USDC as the interest DeFi loans can accrue each second and onchain transactions incur network fees. Additionally, some exchanges may not allow you to transfer the USDC for a 4 - 7 day period as a fraud prevention measure. The hold period may be less for wire transfers but you should confirm with your exchange. Generally, the additional amount you should purchase will depend on the factors above, but for loans under $50,000, including an extra $150 of USDC will likely cover any additional interest incurred. Any excess USDC after repaying your loan will automatically be transferred to your account or wallet and you can convert it back into USD.

  3. Once you are able to transfer the USDC, log into your Rocko account and go to your loan dashboard. There you will see a button to “Make a Payment”. Click it and choose to repay your loan in full. A Payment Buffer will be added to your loan to account for any interest that accrues during the time you start the loan repayment process through the funds being transferred into the DeFi lending protocol. Please note that this amount is an estimate and any excess USDC after repayment will automatically be returned to you.

  4. On the next screen, you will have the option to choose the funding source for your loan. If you have a U.S. Coinbase account in the U.S., please sign in to this account using the “Sign In” button. You’ll be asked to provide permissions to allow Rocko to read your wallet addresses as well as provide instructions to Coinbase to transfer your collateral to your Rocko smart wallet. You can skip to step 6.

    If you have a Coinbase account outside of the U.S. or any Gemini account, please sign in to this account using the “Sign In” button. You’ll be asked to provide permissions to allow Rocko to read your wallet addresses.

    If you have an account at another exchange, please select “Other Address”. You’ll need to log into your exchange account and manually input the wallet address(s) that you wish to receive your collateral.

  5. Once you click “Confirm”, you’ll see your address for your Rocko smart wallet. Transfer the USDC from your exchange account to your Rocko smart wallet address.

  6. Your Rocko smart wallet will automatically repay your loan and withdraw your collateral and any earned rewards to your exchange account or other address provided.

You can take out a new loan at anytime with Rocko!

What is Rocko?

Rocko is a soon-to-launch platform that enables crypto owners to easily and securely borrow from popular DeFi protocols like Compound and get funds in minutes — no experience needed! Use the loan to purchase real estate, pay down higher-rate debt, make everyday purchases, and much more.

Rocko also provides a loan management dashboard and tools like text and email alerts to help manage your loan and collateral. The Rocko team consists of crypto enthusiasts who are ready to help you with any questions you may have. You can join the Rocko Discord server, follow our Twitter account, or visit our resource center to learn more about DeFi borrowing.

Join Rocko's waitlist today and be the first to be notified when they launch! You can also learn more on Rocko's homepage.

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