USDC interest works through a process called "staking," where you can deposit your USDC into specific platforms or services that offer interest on your holdings. These platforms use your USDC to provide liquidity for various DeFi protocols or lending services, and in return, you earn interest on your deposited USDC. The interest rate can vary depending on the platform and market conditions. Make sure to research and choose a reputable platform to stake your USDC for earning interest.