The stablecoin giant Tether finally decided to enter the world of DeFi.
Tether's CTO Paolo Ardoino
On March 10, Tether, the issuer of the stablecoin USDT, officially announced the integration of the DeFi loan agreement Aave. Aave enables customers to make loans using flash loans, a new type of loan product that allows users to obtain unsecured loans for short periods of time with little risk.
Tether's CTO Paolo Ardoino revealed at the CryptoCompare Digital Asset Summit that Tether wants to be a leader in the stable currency business in the decentralized financial (DeFi) space.
Ardoino revealed that some decentralized financial (DeFi) platforms have shown interest in their USDT stablecoin and announced this partnership with Aave at the summit. The partnership will enable both parties to work together to " apply Tether (USDT) as a broader tool to the nascent DeFi ecosystem. "
Stave Kulechov, founder and CEO of Aave, said that new partnerships with dollar-linked stablecoins such as Tether could help the growing DeFi industry play an important role. This is because Tether has the highest market share and market value of all stablecoins, currently about $ 4.6 billion.
According to Aave's data, Tether (USDT) stablecoins provide monthly lenders of up to 12.25%, while other stablecoins (such as MakerDAO's DAI and Circle's USDC) have yields of 8% and 5.7, respectively. %.
"Tether (USDT) is currently the most liquid stablecoin," Kulechov said. Moreover, as "most of the demand for Tether (USDT) comes from institutional participants in the DeFi field, the introduction of Tether (USDT) into DeFi through Lightning Loan can bring more funds to this field.
London-based Aave was founded in January. It was not long established, but it has already set off a storm in the field of DeFi. Last month, bad actors took advantage of a flaw in bZx's DeFi protocol Fulcrum to make a profit of nearly $ 1 million.
"You can use them for good and bad things," Kulechov said. Leaving aside these bad ingredients, some DeFi applications are popular: Aave's smart contracts hold about $ 35 million. The addition of Tether will mean more funds flow into DeFi's blood vessels.
This article has been compiled and published with the permission of decrypt .