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3yrs ago Hedge Fund hedgeweek Views: 416

Tether (USDt) surpasses USD100m on Compound

Submitted 19/06/2020 - 2:27pm

Tether, the blockchain-enabled platform behind the largest stablecoin by market capitalisation, and Compound, a decentralised lending market, are spearheading growth in the nascent decentralised finance (DeFi) space as USDt volume on the platform has surged above USD100 million.

USDt has grown faster than all rival offerings on the Compound protocol, offering the most enticing yields on the platform. Some of the USDt investors indirectly interact with the Compound protocol, which focuses on establishing money markets that are a pool of assets with algorithmically derived interest rates. 

“Tether is an extremely useful asset in the Compound ecosystem, and has quickly become one of the most liquid markets in the Compound protocol and accordingly across all of DeFi,” says Calvin Liu, Strategy Lead at Compound. “USDt’s growth on Compound has been faster than the growth of any other asset in the protocol, by multiples.”

“Compound and its peers are driving a nascent alternative financial system that is dis-intermediating the need for banks and trusted, centralised third parties,” says Paolo Ardoino, CTO at Tether. “As the most liquid, stable and trusted stablecoin, we are gratified that Tether is playing such an important role in the Compound protocol. Tether is becoming the reserve currency of DeFi.”

USDt lenders yield more than 11 per cent while borrowers are paying over 17 per cent. USDt has USD104 million supply, USD77 million borrowing, representing 2,121 suppliers and 421 borrowers, according to data provided by Compound.

Compound’s COMP token, which began trading earlier this week on Uniswap, will support a protocol that aims to enable frictionless borrowing of Ethereum tokens, thereby facilitating a positive-yield approach for the process of storing assets. COMP tokens mark the protocol’s first steps towards decentralisation, with token holders and their delegates able to “debate, propose, and vote on all changes to Compound.” 

In addition to it’s Ethereum-based version of USDt, there are versions of USDt that work on Algorand, Ethereum, EOS, Liquid Network, Omni and Tron. Tether is driven to support and empower growing ventures and innovation in the blockchain space. USDt has grown to a market capitalisation of USD9.8 billion, dwarfing the size of rival stablecoins by market capitalisation, trading volume and number of users. 

Author Profile Tags Cryptocurrency

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