Glossary
Key terms and definitions related to Classic USD, stablecoins, and blockchain technology.
Stablecoin
A cryptocurrency designed to maintain a stable value relative to a reference asset, typically the US dollar. Stablecoins can be fiat-backed, crypto-backed, or algorithmic.
Fiat-Backed Stablecoin
A stablecoin backed by traditional currency (like USD) held in reserve. Each token can be redeemed for the underlying fiat currency, maintaining the 1:1 peg.
Mint
The process of creating new stablecoin tokens. For $USC, minting occurs when a user deposits USD with Brale, and new tokens are issued to their wallet.
Redeem / Burn
The process of exchanging stablecoin tokens for the underlying asset. When $USC is redeemed, the tokens are "burned" (destroyed) and USD is sent to the user.
ERC-20
A technical standard for fungible tokens on Ethereum-compatible blockchains. $USC follows the ERC-20 standard, ensuring compatibility with wallets, exchanges, and DeFi protocols.
Attestation
A formal verification by an independent third party confirming that reserve assets match or exceed the stablecoin supply. Brale provides regular attestations for $USC.
NMLS
Nationwide Multistate Licensing System. A database used by US financial regulators to track licensed money transmitters. Brale is registered under NMLS #2376957.
Money Transmitter License (MTL)
A state-level license required to operate as a money services business in the US. Brale holds MTLs in states where required to issue and redeem $USC.
Custodial Wallet
A wallet where a third party (like Brale) manages the private keys. Brale uses MPC (Multi-Party Computation) custody for secure key management.
Non-Custodial Wallet
A wallet where the user controls the private keys. When you withdraw $USC from Brale to your own wallet, you have non-custodial control.
DeFi (Decentralized Finance)
Financial services built on blockchain technology that operate without traditional intermediaries. $USC can be used in DeFi protocols like ETCswap for trading and liquidity provision.
DEX (Decentralized Exchange)
An exchange that operates using smart contracts rather than a centralized order book. ETCswap is the primary DEX for trading $USC on Ethereum Classic.
AMM (Automated Market Maker)
A type of DEX that uses liquidity pools and mathematical formulas to determine prices, rather than an order book. ETCswap V2 uses a constant product AMM.
Liquidity Pool
A smart contract holding paired tokens that enables trading on a DEX. Users can provide liquidity to pools (e.g., ETC/$USC) and earn trading fees.
Concentrated Liquidity
An AMM feature (used by ETCswap V3) where liquidity providers can allocate capital to specific price ranges, improving capital efficiency.
Slippage
The difference between the expected price of a trade and the actual execution price. Direct minting/redemption through Brale has zero slippage.
Gas
The fee paid to execute transactions on a blockchain. On Ethereum Classic, gas is paid in ETC. Gas costs vary based on network congestion and transaction complexity.
Chain ID
A unique identifier for a blockchain network. Ethereum Classic uses Chain ID 61, Polygon uses 137, and Mordor testnet uses 63.
Proxy Contract
A smart contract pattern that separates storage from logic, allowing upgrades without changing the contract address. $USC uses an upgradeable proxy pattern.
Multi-Signature (Multi-Sig)
A security feature requiring multiple parties to approve a transaction. Used to protect admin functions on the $USC contract.
Proof of Work (PoW)
A consensus mechanism where miners compete to solve computational puzzles. Ethereum Classic uses PoW, providing security and decentralization.
BSA/AML
Bank Secrecy Act / Anti-Money Laundering. US regulations requiring financial institutions to monitor and report suspicious activities. Brale maintains BSA/AML compliance.
KYC (Know Your Customer)
Identity verification process required by financial regulations. Users must complete KYC to mint or redeem $USC directly through Brale.