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A comment on Tether Required Recapitalization in May 2022. Parent comment

Re:Tether Required Recapitalization in May 2022 by rglullis on Friday May 20, 2022 @04:11PM (#31451977)
USDC has the exact same properties as USDT, but has no legal issue and is backed by an entity that is a infinitely more trustworthy.

There is Gemini USD - similar story.

There is DAI if you are long on ETH/BTC and still want/need liquidity.

Curve has a pool without USDT (cDAI/cUSDC).

Uniswap lets you make any type of pair. On its heyday (before v3), I was providing to DAI/USDC and I was getting 2% returns per month.

So my question is: why USDT, when there is a handful of better stabletokens that can be used for the exact same purpose? If it is common knowledge that Tether is not to be trusted, why would any honest person still use it?

[ Parent | on HN ]
Re:Tether Required Recapitalization in May 2022 by SilasX on Friday May 20, 2022 @04:27PM (#31452108)
I’m familiar with the others and use them as well.

https://news.ycombinator.com/item?id=31422545

https://news.ycombinator.com/item?id=31417134

https://news.ycombinator.com/item?id=31412835

My comment was answering a question about “why stablecoins at all”.

To answer your question, because some uniswap v3 pools with USDT offered competitive returns, like the 0.05% WETH/USDT one. That was one of many I used, which included those that paired DAI or USDC with ETH.

I considered the concerns overblown at the time and so was okay with making some the USDT pools a part of my LP portfolio.

I’m honest.

[ Parent | on HN ]
Re:Tether Required Recapitalization in May 2022 by rglullis on Friday May 20, 2022 @05:00PM (#31452447)
It's not about the "concerns" that we should be worried about. We should also be worried about not perpetuating a gigantic scam.

Honesty is not just about "I wasn't the one profiting from the bad thing". It's also "I'm willing to call evil/immoral for what it is".

[ Parent | on HN ]
Re:Tether Required Recapitalization in May 2022 by SilasX on Friday May 20, 2022 @05:10PM (#31452548)
I don’t consider being slightly undercollateralized a “gigantic evil scam” and the rhetoric around Tether is still definitely overblown, and if that were your primary concern (or am I not supposed to say that anymore?), you should have led with it rather than comparing it to similar defi returns.
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Re:Tether Required Recapitalization in May 2022 by rglullis on Friday May 20, 2022 @05:17PM (#31452624)
No. USDT undercollaterization is not my primary concern: https://news.ycombinator.com/item?id=31451820

And I wasn't comparing in terms of returns. I just pointed out that there is no real use-case for USDT that can't be served by the other tokens, including yield-farming in liquidity pools.

[ Parent | on HN ]