ROAD TOWN, British Virgin Islands, March 10, 2020 — Tether, the blockchain-enabled platform that powers the largest stablecoin by market capitalization, and Aave Protocol, an open source and non-custodial protocol, are working together to bring wider adoption of Tether (USDt) to the nascent decentralised finance (DeFi) ecosystem.
USDt is powering a variety of innovative DeFi lending projects. According to data provided by Aave, USDt also offers the best yield for lenders in the marketplace. USDt provides lenders with a monthly yield of 12.25 percent while over the same period MakerDAO’s Dai, and Circle’s USDC offer a yield of 8.08 percent and 5.7 percent, respectively.
USDt’s pivotal role in the growing DeFi space is underlined by its growing use in Flash Loans, which enables customers to borrow a range of ERC20 tokens without posting collateral to back those loan positions, provided that the loan is returned in the same transaction. Flash Loans have been used to take advantage of on-chain arbitrage opportunities, compete for on-chain liquidations and move open positions between DeFi platforms. As a pioneer of Flash Loans, Aave has found USDt’s property to be the most liquid and trusted stablecoin, a powerful tool for powering this innovative form of lending.
Stani Kulechov, CEO of Aave, said: “USDt is the largest stablecoin in the market and it brings a vast amount of liquidity within the DeFi space. Together with Aave, this will help bootstrap DeFi composability via Flash Loans, lending and borrowing.”
“Enabling USDt holders to earn a passive income via an open lending platform such as Aave opens exciting new possibilities for the DeFi space and USDt liquidity,” said Paolo Ardoino, CTO at Tether. “USDt’s use in such innovative DeFi projects is evidence of its important function in the digital currency ecosystem.”
USDt’s total market capitalization has more than doubled from about $2 billion in February 2019 to about $4.9 billion today. Tether works with Algorand, Ethereum, EOS, Liquid Network, Omni and Tron. Tether is driven to support and empower growing ventures and innovation in the blockchain space.
Aave is the fastest growing DeFi protocol to date on the Ethereum blockchain. With a focus on innovation and governance, Aave Protocol thrives to empower builders and finance professionals to obtain access to new business opportunities. Aave will continue to support the USDt ecosystem as the stablecoin with the best yield in DeFi, and will continue supporting flash loans using USDt to allow instant liquidity for traders.
Aave Protocol Stablecoins APY Rates Matrix
Tether is the preeminent stablecoin with the biggest market capitalization, surpassing that of all rival offerings combined. Created in October 2014, Tether 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. Tether combines digital currency benefits, such as instant global transactions, with traditional currency benefits, such as price stability. With a commitment to transparency and compliance, Tether is a secure, fast and low-cost way to transact with money.
Aave Protocol is a decentralized, permissionless and non-custodial lending protocol built on the Ethereum blockchain and governed by the LEND token. Launched in early January 2020, Aave has already seen record growth for the DeFi ecosystem. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain loans by tapping into these pools in both an over collateralized or uncollateralized fashion. Aave Protocol is unique in that it tokenizes deposits as aTokens which accrue interest in real time. It is also the pioneer of the Flash Loan feature, which lets developers borrow instantly and easily; no collateral needed. With 16 different assets and USDt as the main stablecoin, Aave Protocol is the most diverse lending pool in the Ethereum ecosystem.
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