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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]] | ||