USDC is built on blockchain technology and allows for fast, cheap, and secure global transactions. Due to that advantage, many of the world’s largest financial institutions, exchanges, and digital asset institutions are seeking USDC liquidity to make their own financial system more efficient. The easiest way for them to access billions of dollars of USDC at once is to turn towards short-term loans.

Click here to learn more about what USDC is.

What Pebble does:

Pebble does not lend out users funds. Pebble's own USDC funds are lent out to our partnered financial institutions to accrue rewards. Because of the significant demand from institutions, you receive higher rewards than staying in traditional financial systems like banks.

Lending money itself isn't a new thing. Banks have already been lending your money for decades. Except they rely on the old money system (US dollars), instead of this new system. Banks and Pebble simply have different objectives. We want to benefit the average person, while banks stay in the old ways and pocket the majority of rewards that they earn — leaving you with the scraps and pieces.

How Pebble stays safe:

To provide the highest level of security, Pebble usually works with financial partners that over-collateralize on their loans. This means that the institution needs to put down assets with a value greater than the loan they take out.

Over-collateralized loans are loans for which you need to provide a down payment that is worth more than the loan you take out. Examples of common over-collateralized loans are Home Equity Loans, and Margin Trading. For example, 150% over-collateralized means that for every $100 Pebble lends out, there will usually be $150 worth of assets put down by the borrower to ensure your initial principal can never be lost.

If the price of the collateral decreases below 50%, the partners we work with are required to liquidate the collateral. This ensures that Pebble funds are safe.

Click here to learn more on why market crashes do not affect Pebble.

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