Tether and Aave protocol recorded a major increase in the demand for the USDT token, attributed to the growing interest in Defi applications. In our Tether news today, we are reading more about the USDT demand increase.
The blockchain-powered platform and the Aave open-source protocol have reported a huge increase in USDT demand, thanks to the increase in interest in decentralized finance applications. As noted in the press release, USDT remains the fastest growing stablecoin on the market and in the evolving DeFi applications space. There are now more than $7.2 million in USDT available via the Aave platform. USDT supports multiple Defi products on Tether and Aave which now has liquidity of more than $70 million where $60 million of digital assets are locked into smart contracts.
– What is Aave's multi-pool strategy?
– Future of LEND token in governance & insurance?
– Key adoption drivers to ~$70M in market size?https://t.co/uF71XUt8Pw
— Token Terminal (@tokenterminal) May 22, 2020
The release mentioned that there was a ‘’ready take up of USDT in Flash loans’’ which allows the users to borrow multiple different ERC-20 compliant tokens without having to put up the collateral to back the loan positions. As it was explained:
”Flash Loans can be used to take advantage of on-chain arbitrage opportunities, compete for on-chain liquidations and move open positions between DeFi platforms. The products could even power High Frequency Trading strategies in crypto.”
The use of the USDT token on Aave was powered by multiple lending solutions that can be supported by the development of the alternative financial ecosystem. We can also see that the US dollar-pegged stablecoin provides the depositors with a rate of 6% APY interest on the USDT holdings without having to give up on their funds. The CEO of Aave Stani Kulechov said:
“Our depositors receive the highest average yield on stablecoins with USDT… most protocol fees have been collected with USDT and part of them redistributed back to integrators who are building new DeFi products by taking advantage of the DeFi composability.”
Paolo Ardoiono, the CTO of Tether said that USDT is ‘’the reserve currency of crypto and DeFi.’’ The USDT market cap increased by more than 4 times from around $2 billion last year to about $9 billion. Tether works along with EOS, Algorand, Ethereum, and Tron. Tether and its sister company Bitfinex were subpoenaed by the US Commodity Futures Trading Commissions back in 2017. The documents show that there were $443 million in the company’s bank accounts as of September 2018.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]