Re:Tether is “too big to fail” – the entire crypto industry ...
by gillesjacobs on Sunday December 13, 2020 @07:01PM
(#25411800)
Many DeFi projects have Tether as their largest stable liquidity pool.
While Tether is currently the largest stablecoin, the competition competes on the fact that they are overcollaterized, fully backed and auditted. The sooner Tether is replaced by the competition the better. On the upside, stablecoin swaps like Curve and Balancer have made exchanging USDT for any other competing stablecoin cheaper and easier.
I wager these services are being used mainly to decrease reliance on Tether for whales. Would be interesting to analyse the data of stablecoin swaps to gauge trust in USDT.
While Tether is currently the largest stablecoin, the competition competes on the fact that they are overcollaterized, fully backed and auditted. The sooner Tether is replaced by the competition the better. On the upside, stablecoin swaps like Curve and Balancer have made exchanging USDT for any other competing stablecoin cheaper and easier.
I wager these services are being used mainly to decrease reliance on Tether for whales. Would be interesting to analyse the data of stablecoin swaps to gauge trust in USDT.