Tether (USDT) exceeded $200 million on Compound.
In the last few days, there has been a real peak in locked volumes on DeFi platforms, thanks to the incredible rise of Compound from less than 100 million to almost 400 million in three days.
A substantial part of this is ETH, but another significant part is USDT.
In the same period, even the price of Compound’s COMP token increased in value by 160%, which really does reveal a great interest in this protocol from decentralized finance.
USDT is the world’s largest stablecoin by market capitalization, the third absolute cryptocurrency behind Bitcoin and Ether and has grown faster than all competitors on Compound, offering the most attractive interest rates for those who decide to lend their tokens through this DeFi platform.
At the moment, for example, USDT lenders are getting more than 11% return per year, while borrowers agree to pay more than 17% interest.
As a result of this rise, USDT is also the most liquid stablecoin in decentralized finance.
Compound Strategy Lead, Calvin Liu, said:
“Tether is an extremely useful asset in the Compound ecosystem, and has quickly become one of the most liquid markets in the Compound protocol and accordingly across all of DeFi. USDt’s growth on Compound has been faster than the growth of any other asset in the protocol, by multiples. ”
The CTO of Tether, Paolo Ardoino, added:
“Compound and its peers are driving a nascent alternative financial system that is disintermediating the need for banks and trusted, centralized third parties,” said Paolo Ardoino, CTO at Tether. “As the most liquid, stable and trusted stablecoin, we are gratified that Tether is playing such an important role in the Compound protocol. Tether is becoming the reserve currency of DeFi”.