Dai meets the biggest opponent? Tether considers developing algorithm stabilization currency USDTX

Stabilization currency provider Tether is considering creating an algorithmic alternative to its popular USDT token—perhaps allowing traders to use cryptocurrency as collateral—as a way to offer another issue and trade with dollar-linked assets. method.

Programming-942487_1280

Paolo Ardoino, chief technology officer of Tether and its affiliated exchange Bitfinex, told Crypto Briefing that the company is working on a new algorithmic stabilization coin, possibly called "USDTX."

Although there are few details, if Tether continues the project, "USDTX" allows traders to obtain a value store by leveraging their cryptocurrency holdings.

Since Tether has been run on the Bitcoin, Ethereum, EOS and TRON blockchains, it also offers traders the possibility to use a wider variety of digital assets as collateral.

The proposed Tether algorithm stable currency will work in the same way as Dai. However, Ardoino said they are focused on ensuring that their products can scale safely. He explained:

"Algorithm stabilization coins work well as long as they are the right size, but if Tether is forced to liquidate large amounts of money in a disaster, they will have the risk of flooding the market and driving down prices."

Ardoino said that the algorithmized Tether must be able to scale to the same multi-billion dollar size as its current USDT token, but it must also be able to withstand large-scale liquidation without significant disruption to the overall market.

"Industry backbone"

The need for scalable algorithm-stabilized coins comes from Tether's customers, some of the largest market makers and cryptocurrency hedge funds. “We have a good relationship with the biggest customers, and if they want, we will do our best,” Ardoino said.

Nearly two months after the company issued tokens linked to offshore renminbi, discussions around the algorithm Tether are coming. With Tether now supporting the renminbi, the euro and the dollar, Ardoino said that they now cover the world's three main reserve currencies, and there are no plans to add any other currency at this stage.

Ardoino said:

“Our goal is to support what users want and become a technology leader. This includes improving security and basic technology, as well as increasing adoption rates.”

“Tether is growing wild,” Ardoino said. After focusing on increasing the number of integrations, the token is one of the most liquid digital assets in the industry and is widely used in the rapidly expanding DeFi space.

Even with the recent surge in the number of stable currency providers and the company’s two lawsuits in New York, Tether’s popularity has not decreased. The provider is still growing strongly month by month and has issued more than 81 million Tethers (USDT) in the first week of October.

Ardoino said that Tether's ultimate goal is to become the backbone of the industry. Integrating as many blockchains and applications as possible means that they can be the preferred interoperability layer for users interested in transferring value between different protocols.

This includes the proposed algorithm stabilization currency, and Ardoino emphasizes that the algorithm's stable currency will not replace the current USDT token. Instead, Tether hopes that the two complement each other, giving users the opportunity to choose between using legal or cryptocurrencies to obtain value stores .

If you continue, the Tether-linked exchange Bitfinex can be used as a platform to allow seamless transition from one asset to another, giving users a way to trade the collateral they use while still holding US dollars. Valuation of digital assets.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Number reading | The paradox behind the 109 reports The truth is that IEO is an antidote or a poison?

After several months of fermentation, the IEO boom continues, and there is even a wave of higher waves. Yesterday (Ap...

Blockchain

Bitfinex abolishes the minimum balance threshold of $10,000

Bitfinex, a Hong Kong-based cryptocurrency exchange, is now open to all traders as they canceled a minimum entry thre...

Blockchain

The cryptocurrency exchange "closed tide", running to catch up with P2P

The cryptocurrency exchange, once regarded as “stable and not paying”, is more crazy than other fields,...

Blockchain

Swiss exchange SIX announces investment in cryptocurrency trading platform Omniex, exact amount not disclosed

According to a report by Finance Magnates on February 25, SIX Group, an operator of the Swiss Stock Exchange, announc...

Blockchain

PAData: FCoin potential victims or more than 2000 people, per capita loss or more than 25 BTC

Analyst | Carol Editor | Bi Tongtong Production | PANews Data Partner | Chain.info On February 17, the FCoin, which w...

Blockchain

Korean or Korean? Bittrex Dreams New York

In June 2015, the New York Financial Services Department (NYDFS) became the first pioneer to develop a regulatory fra...