Tether: high demand within DeFi
Tether: high demand within DeFi

Tether: high demand within DeFi

By Marco Cavicchioli - 28 May 2020

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Tether states that recently there have been real spikes in demand for USDT across DeFi platforms such as Aave. 

Aave is a fast-growing DeFi platform. Although it only debuted in January of this year, it has already reached the fourth place among the decentralized finance platforms with most locked assets. 

In particular, USDT and DAI are the ones that have grown the most on Aave in the last period, with more than 7 million USDT and more than 2 million DAI locked on this protocol. 

As far as BTC is concerned, the total locked assets to date are less than those at the end of March, and less than one million dollars, while for ETH the total locked assets are slightly higher than the previous peak.  

The demand for USDT comes mainly from flash loans, i.e. collateral-free loans that must be repaid immediately in the same transaction, and which are primarily used to take advantage of onchain arbitrage opportunities, to compete on liquidations, and to move open positions between various DeFi platforms. 

In addition, according to Aave, USDT is the stablecoin that offers the highest returns for lenders, with an active interest rate of 6.37%

The CEO of Aave, Stani Kulechov, said: 

“Aave has shown itself to be the safest place for institutions to deposit their USDt. No other stablecoin has grown at such a pace as USDt in the DeFi lending market space. Since USDt’s launch on Aave, our depositors receive the highest average yield on stablecoins with USDt. Similarly, most protocol fees have been collected with USDt and part of them redistributed back to integrators who are building new DeFi products by taking advantage of the DeFi composability”.

The CTO of Tether, Paolo Ardoino, commented: 

“USDt is playing an important role in boosting liquidity across the DeFi space. USDt’s growing popularity is making it fast become the stablecoin of choice across DeFi platforms. As use of USDt grows for myriad purposes the world’s most trusted, stable and liquid stablecoin consolidates its central position in the digital asset ecosystem. Tether is the reserve currency of crypto and DeFi”.

Moreover, Cloudbet crypto casinos have recently added USDT to the currencies available to their customers

After a month of testing with a small group of players, Cloudbet has opened up the possibility for everyone to deposit, withdraw and bet with USDT. In addition, new players who deposit USDT on Cloudbet are granted a welcome bonus of up to 1,000 USDT. 

A Cloudbet spokesperson said: 

“Since launch, a fundamental part of our philosophy has been about empowering players with technologies that solve their problems. USDT and stablecoins are an extension of that”. 


Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded and the Facebook group" Bitcoin Italia (open and without scam) ".

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