Note: The author of this article is di0nix!
Important note: The information in this article is for reference only and does not constitute investment advice. Although all steps have been personally verified by me, I am not responsible for any problems caused by using this guide.
Introduction to USDC
USDC is a stablecoin, similar to Tether and USDT, and it natively supports 15 blockchain networks including Algorand, Arbitrum, Avalanche, etc. In addition, through third-party cross-chain bridges (such as WAX using the cloud wallet cross-chain bridge), USDC can also be connected with many emerging blockchains to form cross-chain USDC.
What are stablecoins?
Stablecoins are virtual currencies whose core value lies in maintaining parity with real currencies (such as the US dollar, RMB, and Euro). Unlike the currency in a bank account, stablecoins are not stored in a bank database, but run on the blockchain, similar to digital currencies such as Bitcoin, Ethereum, and WAXP.
The practicality of stablecoins
Stablecoins are popular because they allow everyone to easily own and use them through the Internet without a bank account. They can be used to pay for goods, transfer money across borders, preserve value, and freely exchange with other cryptocurrencies. Although some of these functions can be achieved by traditional cryptocurrencies such as Bitcoin, stablecoins stand out for their stable value and ease of use.
The risks of stablecoins
The biggest risk of stablecoins is losing stability. Historically, there have been stablecoins that have depreciated or even returned to zero (such as UST) due to their inability to maintain their peg to the reference currency. Therefore, how stablecoins can maintain their stability is a core issue that investors need to pay attention to.
Collateralized stablecoins and algorithmic stablecoins
Stablecoins are mainly divided into two categories: collateralized and algorithmic. Collateralized stablecoins need to hold an equivalent amount of real currency as reserves at a 1:1 ratio to ensure their stability. Algorithmic stablecoins automatically adjust the supply through mechanisms such as smart contracts to maintain price stability, but the risks are relatively high.
Which type of stablecoin is USDC?
USDC is a collateralized stablecoin whose stability depends on the integrity of the issuer Circle and the real currency in its reserves. Investors can learn more by visiting Circle's official website.
Why choose USDC?
Although Tether (USDT) is the most well-known stablecoin, USDC has stronger global availability, especially in the context of European regulations restricting the use of USDT. In addition, USDC also supports popular blockchains such as Solana, with low transaction costs and easy use.
Advantages of using USDC on Solana
Solana has become the preferred platform for USDC due to its high popularity, ease of use, and low transaction costs. This makes it extremely convenient to buy and transfer USDC on Solana.
How to Convert WAXP to USDC on Solana
If you have WAXP and want to convert it to USD value (or SOL tokens), but you cannot use centralized exchanges (CEX) such as Binance or Crypto, then using USDC for conversion is a good option. The whole process is simple and divided into two steps: first, convert WAXP to WAXUSDC through a decentralized exchange (DEX, no registration or KYC required); then, use the cross-chain bridge to transfer WAXUSDC from the WAX blockchain to USDC on the Solana blockchain.
Step 1: Convert WAXP to WAXUSDC
You have two ways to do this: exchange directly through a liquidity pool or trade on the market. Take Alcor, a DEX on the WAX blockchain, as an example (of course, there are other DEXs to choose from):
To exchange directly, visit Alcor Exchange, log in with your WAX Wallet, and enter the amount of WAXP you wish to exchange. Please note that using liquidity pools is more suitable for small transactions, so please confirm the amount of USDC you can obtain before trading.
If you choose market trading, you can also log in to Alcor Exchange and place an order.
Step 2: Use the cross-chain bridge to transfer WAXUSDC to the Solana blockchain
Visit the Cloud Wallet Bridge website, select WAX as the source blockchain (1) and Solana as the target blockchain (2), and log in with your WAX wallet and Solana wallet.
Once on the page, select “Token Bridge” (1) and “Exchange Tokens” (2), confirm that the source chain (3) and target chain (4) are WAX and Solana, select USDC as the token to be transferred (5), and enter the amount (6). After confirming everything is correct (7), click the “Exchange” button.
After that, go to the “Claim Token” section, wait for the blockchain confirmation message to disappear, and click the “Claim” button. Confirm the transaction in a Solana wallet (such as Solflare) to complete the conversion.
Check the transaction and sign it!
Now head to the “Claim Tokens” section (1) to claim your tokens (2)!
Obviously, you need to wait for the “Waiting for blockchain confirmations” message to disappear before pressing “CLAIM ”.
While you wait, press the Refresh button
After pressing "CLAIM ", accept the following message
Now you need to accept the transaction in your Solana wallet (in this example I’m using Solflare):
If you use Solflare (like me), you may get the following warning:
That’s it! You now have USDC in your Solana wallet
Now that you own USDC on Solana, you are free to use it or convert it further.
The Reverse: Converting USDC to WAXP on Solana
You may want to buy WAXP but don’t have direct access to a CEX that allows you to exchange it due to restrictions on cryptocurrencies in your country. Now let’s take a look at how to simply convert USDC to WAXP on Solana. It’s a two-step process: first, we’ll use the Cloud Wallet Bridge to transfer your USDC from the Solana blockchain to the WAX blockchain, and then use a DEX (a decentralized exchange that requires neither registration nor KYC) to convert USDC to WAXP.
Step 1: Use the cross-chain bridge to convert USDC on the Solana blockchain to WAXUSDC on the WAX blockchain
To transfer back from USDC on Solana to WAXP, the process is similar but in reverse: use the Cloud Wallet Bridge (https://bridge.mycloudwallet.com/), select Solana as the source blockchain (1) and WAX as the target blockchain (2), and log in with your WAX wallet and Solana wallet.
Once logged in, select “Token Bridge” (1) and “Swap Tokens” (2). In box 3, select Solana, in box 4, select WAX, and in box 5, select USDC. In box 6, enter the amount of USDC you want to transfer; box 7 will contain the same amount. Finally, press the purple button “SWAP”!
Approve transactions in SOL wallet
Now wait a few seconds… Done! If you go into the History section, you’ll see that your WAXUSDC Tokens are already in your WAX Wallet, no need to do anything else!
On the WAX Blockchain, use a DEX such as Alcor to exchange WAXUSDC for WAXP.
Step 2: Exchange WAXUSDC for WAXP
The second and final step to obtaining WAXP is to convert your WAXUSDC into WAXP.
You can do this in two ways: by exchanging directly (using a liquidity pool) or by trading on a marketplace. The example uses the WAX DEX Alcor, but there are other DEXs that run on the WAX Blockchain.
If you would like to make an exchange, visit the Alcor Exchange, log in with your WAX Wallet, and enter the amount of WAXP you would like to exchange.
Please note: It is only worth using a liquidity pool if you don’t need to exchange large amounts of funds. Always check how much USDC you will get before accepting!
If you want to trade on the market, visit Alcor Exchange and place your order.
That’s it: you now have WAXP tokens in your wallet, ready to use as you wish!
*Friendly reminder: This article is for popular science purposes only and does not constitute any investment advice!
