ROAD TOWN, British Virgin Islands, June 19, 2020 — Tether, the blockchain-enabled platform that powers the largest stablecoin by market capitalization, and Compound, a decentralized lending market, are spearheading growth in the nascent decentralized finance (DeFi) space as USDT volume on the platform has surged above US$100 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,” said 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 disintermediating the need for banks and trusted centralized third parties,” said 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.”
As of June 19, 2020, USDt had over US$206 million in total supply and US$129 million in total borrowing on the Compound protocol, with 2,704 suppliers and 592 borrowers participating, 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 decentralization, 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 capitalization of US$9.8 billion, dwarfing the size of rival stablecoins by market capitalization, trading volume, and the number of users.
About Tether
USDT is the preeminent stablecoin with the biggest market capitalization, surpassing that of all rival offerings combined. Created in October 2014, USDT has grown to become the most traded cryptocurrency. Tether is disrupting the legacy financial system by offering a more modern approach to money. By introducing fiat currency-digital cash to the bitcoin, Ethereum, EOS, Liquid Network, Omni, Tron, and Algorand blockchains, Tether makes a significant contribution to a more connected ecosystem. USDT combines digital currency benefits, such as instant global transactions, with traditional currency benefits, such as price stability. With a commitment to transparency and compliance, USDT is a secure, fast, and low-cost way to transact with money.
