# How QUSDC Works ## Screenshot 1: Mint QUSDC and bring USDC onto the QIE blockchain.
### This screen is divided into two parts. ## Step 1: Bringing USDC to the QIE Network(Why the Bridge Is Needed) #### Why the Bridge Is Needed Before a user can mint **QUSDC**, it’s important to understand a core limitation of blockchains: > **USDC issued by Circle does not natively exist on the QIE blockchain.** USDC is originally issued on networks such as **Ethereum**. Since blockchains cannot directly communicate with one another, assets must be **bridged and wrapped** before they can be used on a different network. This is the same reason why: * **BTC** is used on Ethereum as **WBTC** * **ETH** appears on other chains as **WETH** *** #### Why Wrapped USDC Is Required on QIE To maintain a **1:1 peg** with real USDC, **QUSDC** must be backed by actual USDC value. Because **Circle has not issued native USDC on QIE**, the following process is used: 1. Users **bridge USDC from Ethereum** 2. The bridged asset appears on QIE as **WUSDC (Wrapped USDC)** 3. Each **WUSDC** represents real USDC that is **locked on Ethereum** *** #### Foundation of QUSDC This wrapped version of USDC (**WUSDC**) serves as the **underlying collateral** backing **QUSDC**, ensuring: * Full value backing * Price stability * Trustless cross-chain representation *** ## Part 1: Bridging USDC from Ethereum to QIE
### Bridging USDC to QIE In the first section of the interface, the user sees: > 🔹 **Bridge USDC to QIE** This step allows users to move USDC from Ethereum to the QIE network. *** #### What Happens During Bridging When using the bridge, the user: 1. Selects an amount of **USDC on Ethereum** 2. Initiates a **non-custodial bridge** 3. Receives **WUSDC (Wrapped USDC)** on the **QIE blockchain** *** #### Key Points to Know * The bridge is **non-custodial** * **No third party** controls user funds * The process typically takes **2–5 minutes** * Real **USDC is locked on Ethereum** * An equivalent amount of **WUSDC is minted on QIE** *** #### Result of This Step After the bridge completes: * ✅ **USDC value is now available on QIE** * ❌ **QUSDC has not been minted yet** > **Note:** This step is only required if the user does not already hold **WUSDC on QIE**. *** ## Part 2: Minting (Issuing) QUSDC
### Locking WUSDC as Collateral (Minting QUSDC) Once the user has **WUSDC** in their QIE wallet, they move to the second section of the interface. > 🔹 **Lock WUSDC as Collateral** This is the step where **QUSDC is issued**. *** #### What Happens During Minting When the user locks WUSDC: 1. The user **deposits (locks) WUSDC** into a smart contract 2. The smart contract **verifies the collateral** 3. **QUSDC is minted 1:1** and sent directly to the user’s wallet *** #### Details Displayed in the Interface The screen highlights the following parameters: * **Collateral Ratio:** `1.00` (100%) * **Minting Model:** Fully collateralized * **Discretionary Minting:** None * **Third-Party Involvement:** None *** #### Trust Model & Guarantees This entire process is: * **Fully on-chain** * **Enforced by smart contracts** * **Trust-minimized by design** No centralized party can alter, override, or bypass these rules. *** ### When Do Users Need Each Step? #### Use Part 1 — Bridge — When: * The user does **not** have USDC or WUSDC on QIE * The user only holds **USDC on Ethereum** *** #### Use Part 2 — Mint — When: * The user already has **WUSDC on QIE** * The user wants to **mint QUSDC directly** *** #### In Short > **Bridge only once. Mint anytime.** *** ### Why This Step Is Critical This two-step design ensures that: * Every **QUSDC** is backed by **real USDC** * The **1:1 peg** is cryptographically enforced * **QUSDC remains fully decentralized** * No centralized issuer can mint **unbacked tokens** This is the core reason **QUSDC can exist without native Circle-issued USDC on QIE**. ## Screenshot 2: Understanding Your QUSDC Position
### Your Position (On-Chain Summary) After a user locks **WUSDC** and mints **QUSDC**, the interface displays a clear summary called **“Your Position.”**\ This section helps users understand exactly how their QUSDC is backed on-chain. *** #### 🔹 Collateral Locked **What it means:**\ This shows the total amount of **WUSDC (Wrapped USDC on QIE)** locked inside the decentralized smart contract. * WUSDC represents **real USDC value** * It is used as collateral to back your QUSDC * The collateral remains locked **as long as QUSDC is in circulation** **In simple terms:** > This is the USDC value securing your QUSDC. *** #### 🔹 QUSDC Minted **What it means:**\ This shows the total amount of **QUSDC** you have issued. Because QUSDC follows a **strict 1:1 backing model**: * For every **1 WUSDC locked** * You receive **1 QUSDC** There is: * No leverage * No over-minting * No algorithmic adjustment *** #### 🔹 Collateral Ratio (1 WUSDC = 1 QUSDC) **What it means:**\ This confirms that your position is: * **100% collateralized** * **Backed 1:1 by USDC value** This ratio is **fixed** and: * Never changes * Cannot be altered by the system * Is unaffected by market conditions *** #### 🔹 Liquidation Risk: None **Why there is no liquidation risk:**\ Unlike lending protocols or over-collateralized stablecoins: * QUSDC does **not** depend on price feeds * There is **no collateral volatility** * There is **no under-collateralization scenario** Since: > **QUSDC = USDC value, locked 1:1** There is: * No liquidation mechanism * No risk of forced position closure *** ### Why This Matters for Users This position model ensures that: * Users always know **exactly how their QUSDC is backed** * There are **no hidden risks or leverage** * The system remains **simple, predictable, and transparent** *** #### QUSDC Is Well-Suited For * Payments * Trading * DeFi * Treasury management ## Screenshot 3: Burning QUSDC and Off-Ramping Back to USDC
This screenshot explains how users exit QUSDC and convert it back into USDC.\ Just like minting, the burn and off-ramp process is fully decentralized and smart-contract driven. ### This screen is divided into two parts.
## Part 1: Burning QUSDC to Release USDC on QIE > 🔹 **Burn QUSDC** This section is used when a user wants to: * Burn previously issued **QUSDC** * Unlock the **USDC value** backing it *** #### How It Works When burning QUSDC, the following steps occur: 1. The user **deposits QUSDC** into the smart contract 2. The smart contract **burns the QUSDC** 3. The corresponding **USDC value is released** to the user Because QUSDC is backed **1:1**: * Burning **100 QUSDC** * Releases **100 USDC value** *** #### Result of This Step After the burn is completed: * **QUSDC is permanently removed from circulation** * The user now holds **USDC on the QIE blockchain** ⚠️ **Important:**\ The USDC received on QIE is still **WUSDC (Wrapped USDC)**, which represents real USDC locked on Ethereum. *** ### What Can Users Do After Burning QUSDC? Once the user receives wrapped USDC on QIE, they can: * Trade on **QIE DEXs** * Lend or borrow in **DeFi protocols** * Transfer funds to **other QIE users** * Use USDC across the **QIE ecosystem** *** At this point, the **off-ramp from QUSDC to USDC on QIE is complete**.
## Part 2: Bridging USDC from QIE Back to Ethereum > 🔹 **Bridge WUSDC to ETH** This step is **optional** and only required if the user wants to: * Move USDC **off the QIE blockchain** * Receive **native USDC on Ethereum** *** #### How It Works When bridging WUSDC back to Ethereum: 1. The user selects the amount of **WUSDC on QIE** 2. Initiates the **non-custodial bridge** 3. **WUSDC is burned on QIE** 4. **Real USDC is released on Ethereum** *** #### Timing & Trust Model * Typical completion time: **2–5 minutes** * **No custodial risk** * Fully **smart-contract–driven** *** ### When Do Users Need Each Step? #### Use Part 1 — Burn QUSDC — When: * You want to **exit QUSDC** * You want **USDC value on QIE** *** #### Use Part 2 — Bridge to Ethereum — When: * You want **native USDC on Ethereum** * You want to move funds to **another ecosystem** *** #### In Simple Terms > **Burn to exit QUSDC. Bridge only if you want to leave QIE.** *** ### Why This Two-Step Exit Matters This design ensures that: * **QUSDC supply always matches reserves** * No **unbacked tokens** remain in circulation * Users retain **full control** over their funds * The system remains **transparent and decentralized** Minting and burning follow the same **trust-minimized principles**, enforced entirely by smart contracts. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.stable.qie.digital/how-qusdc-works.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.