Explained by Yielro
EURC vs USDC: yield and currency exposure for European users
By Yielro · Updated
EURC is designed to follow the euro and USDC the US dollar. For a user whose spending is in euros, USDC adds EUR/USD currency exposure. Both can be used in separate lending strategies, with variable rates and additional risks. The stablecoin issuer and the strategy generating yield play different roles.
A side-by-side comparison
| Question | EURC | USDC |
|---|---|---|
| Reference currency | Euro | US dollar |
| EUR/USD exposure for a euro-based user | No direct dollar exposure from the reference currency | Yes |
| Yield from simply holding the token | Not automatic | Not automatic |
| What else to compare | Strategy, fees, liquidity and risks | Strategy, fees, liquidity and risks |
The rate and the exchange rate are separate
A dollar strategy can show a higher APY while producing a lower result in euros if the dollar weakens. The reverse can also happen. Comparing EURC and USDC therefore requires both a yield comparison and a currency decision; neither predicts the future exchange rate.
Stability is a design objective
A token designed to track a currency can still trade away from that value. Issuer, reserve, operational and smart-contract risks remain relevant. Placing the token in a lending strategy adds another layer of exposure.
Choosing in Yielro
Yielro presents supported euro and dollar strategies separately. Read the selected strategy information and current costs before choosing. Availability of a token on a blockchain does not establish eligibility for Yielro, immediate bank payout or the availability of every lending strategy.