CADC is a digital asset designed to maintain a stable value relative to the Canadian Dollar (CAD). It serves as a regulated on-ramp for Canadians entering the decentralized finance (DeFi) ecosystem.
What is CADC structurally?
CADC is a fully collateralized stablecoin where each token is backed 1:1 by Canadian dollars held in regulated Canadian financial institutions. It is issued by Paytrie, a Canadian cryptocurrency platform specializing in stablecoin on-ramps.
The asset is primarily available on the Base network, an Ethereum Layer 2 incubated by Coinbase. This infrastructure allows for significantly lower transaction costs and faster settlement times than traditional Ethereum mainnet transactions.
How it works in practice
Users acquire CADC by initiating a purchase through the Paytrie platform using Canadian bank transfers. The process involves selecting the CADC-BASE network option and entering the desired purchase amount.
Once the payment is received, Paytrie mints the equivalent amount of CADC and sends it to the user’s specified wallet address. This allows Canadians to hold CAD-denominated value on-chain without exposure to the volatility of assets like Bitcoin.
Fees and pricing mechanics
Paytrie operates on a transparent fee model for minting and redeeming CADC. While the token maintains a 1:1 peg, the platform typically charges a flat fee or a small percentage per transaction to cover processing and network costs.
Because CADC is hosted on Base, users pay minimal network fees for on-chain transfers. These “gas fees” are paid in ETH but are usually a fraction of a cent, making CADC suitable for micro-payments and frequent transfers.
Limits, eligibility, and availability
CADC is specifically designed for residents of Canada who have access to the Interac e-Transfer system or other Canadian banking rails. Users must complete a verification process through Paytrie to comply with Canadian AML/KYC regulations.
The asset is widely available across the Base ecosystem, meaning it can be used in various decentralized exchanges (DEXs) and lending protocols that support the network. Its availability is primarily restricted by the geographic reach of Paytrie’s banking partners.
Tradeoffs, risks, and limitations
The primary tradeoff of CADC is the centralized nature of its issuance. Users must trust Paytrie to manage the underlying CAD reserves and maintain the 1:1 peg through accurate accounting and regular audits.
While the Base network provides speed and low costs, it is a Layer 2 solution that inherits the security of Ethereum but also introduces its own set of smart contract risks. CADC is not an insured bank deposit and is subject to the operational stability of both the issuer and the network.
