Difference between revisions of "USDT"
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USDT is an ERC-20 Stablecoin Token pegged to the US Dollar. It was launched in 2014 by Tether. | USDT is an ERC-20 Stablecoin Token pegged to the US Dollar. It was launched in 2014 by Tether. | ||
== Token Avantages == | |||
==== Tether for Individuals ==== | |||
Tether tokens offer exceptional liquidity on tier one exchanges giving traders the ability to take advantage of arbitrage opportunities in the fastest time possible. | |||
==== Tether for Merchants ==== | |||
For merchants, integrating Tether tokens opens up an array of opportunities for consumers to purchase products and services. | |||
==== Tether for Exchanges ==== | |||
Tether tokens play a pivotal role in the digital token ecosystem and are the most actively traded in terms of 24-hour volume. | |||
=== How do Tether Work? === | |||
Tether tokens exist as digital tokens built on several leading blockchains, including [[Algorand]], [[Avalanche|Avalanch]]<nowiki/>e, Bitcoin Cash’s Simple Ledger Protocol (SLP), [[Ethereum]], EOS, Liquid Network, Omni, [[Polygon]], [[Tezos]], [[Tron]], [[Solana]] and Statemine. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of Tether tokens. | |||
Every Tether token is 100% backed by reserves, which includes traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties. | |||
=== What currencies and commodities does Tether support? === | |||
Tether supports US dollars (USD), euros, Mexican peso, offshore Chinese yuan, and Gold, with the following Tether tokens, respectively: USD₮, EUR₮, MXN₮, CNH₮ and XAU₮. | |||
=== Why are "authorised but not issued" Tether tokens required? === | |||
* “Authorised but not issued” USD₮ are required to keep the entire creation and issuance process as secure as possible. There is a need to balance the security risks to Tether’s private keys and catering to new market demand for USD₮. | |||
* By creating “authorised but not issued” USD₮, Tether limits the number of times Tether’s signers need to access their authorisation private keys, thereby reducing their exposure to security threats. | |||
* With “authorised but not issued” USD₮ stored in Tether’s treasury (and not in circulation or part of Tether’s market capitalization), Tether can issue these USD₮ as soon as new customer funds are received. This ensures that every USD₮ issued is 100% backed by Tether’s reserves. | |||
== Sources: == | |||
* https://tether.to/en/ | |||
* https://defillama.com/peggedasset/tether | |||
[[Category:Stablecoin]] | [[Category:Stablecoin]] | ||
Latest revision as of 09:04, 23 June 2022
USDT is an ERC-20 Stablecoin Token pegged to the US Dollar. It was launched in 2014 by Tether.
Token Avantages
Tether for Individuals
Tether tokens offer exceptional liquidity on tier one exchanges giving traders the ability to take advantage of arbitrage opportunities in the fastest time possible.
Tether for Merchants
For merchants, integrating Tether tokens opens up an array of opportunities for consumers to purchase products and services.
Tether for Exchanges
Tether tokens play a pivotal role in the digital token ecosystem and are the most actively traded in terms of 24-hour volume.
How do Tether Work?
Tether tokens exist as digital tokens built on several leading blockchains, including Algorand, Avalanche, Bitcoin Cash’s Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana and Statemine. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of Tether tokens.
Every Tether token is 100% backed by reserves, which includes traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties.
What currencies and commodities does Tether support?
Tether supports US dollars (USD), euros, Mexican peso, offshore Chinese yuan, and Gold, with the following Tether tokens, respectively: USD₮, EUR₮, MXN₮, CNH₮ and XAU₮.
Why are "authorised but not issued" Tether tokens required?
- “Authorised but not issued” USD₮ are required to keep the entire creation and issuance process as secure as possible. There is a need to balance the security risks to Tether’s private keys and catering to new market demand for USD₮.
- By creating “authorised but not issued” USD₮, Tether limits the number of times Tether’s signers need to access their authorisation private keys, thereby reducing their exposure to security threats.
- With “authorised but not issued” USD₮ stored in Tether’s treasury (and not in circulation or part of Tether’s market capitalization), Tether can issue these USD₮ as soon as new customer funds are received. This ensures that every USD₮ issued is 100% backed by Tether’s reserves.