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.