# aUSDC

When depositing into Orbit Earn, the equivalent amount of aUSDC is received as receipt tokens, this will be calculated with the most current exchange rate between USDC and aUSDC. \
aUSDC is a yield-bearing stablecoin that increases in value as yield into compounded into the Orbit Earn vault, beginning at 1:1 with USDC at the vault's inception.

Every time rewards are compounded in the vault, the exchange rate grows and value of aUSDC increases accordingly. This aUSDC represents a claim on the users principle as well as any accrued interest/yield. aUSDC is abstracted from the front-end of Orbit Earn to keen the user experience simple, but can be viewed in the users' wallet.&#x20;

Rewards are queiried and compounded into aUSDC every time a use interacts with a deposit or withdrawal action on Orbit Earn Vault.

When a user opts to withdraw their Orbit Earn deposits, the current exchange rate is calculated and the user receives the equivalent amount of USDC in return.

{% hint style="info" %}
**Example:**&#x20;

User A deposits **10,000 USDC** into Orbit when 1 aUSDC = 1.1 USDC. In return he receives **9,090.91 aUSDC** tokens as a receipt. \
User A remains in the vault for 12 months, the average compounded yield for that 12 month period was 15%. The new exchange rate is 1 aUSDC = 1.265 USDC.

The user opts to withdraws his whole deposit from Orbit after the 12 month period. In the background the **9,090.91 aUSDC** is converted at the latest exchange rate and User A receives **11,500 USDC; h**is principle and earned yield for that period.
{% endhint %}

aUSDC is transferable, so it can be used across a range of various DeFi strategies and even bridged to other networks. This allows users to access Orbit yield through the appreciation of their aUSDC, making their stablecoin holdings productive.

If transferred to a new wallet, the new wallet will then be able to withdraw the equivalent USDC from Orbit Earn.&#x20;

If users opt to use the streaming function, the users' aUSDC will be held inside the streaming contract and not directly in their wallets. It will need to be withdrawn from the streaming contract to be transferred. Users will still be able to withdraw from Orbit Earn as a normal function without withdrawing from the streaming contract.


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