In a press release issued today, we learned that the Tether (USDT) stablecoin will soon be coming to Hermez.
This is a layer 2 zk-rollup solution that allows payments and token transfers to be scaled on the Ethereum blockchain, but at a lower cost and at a much faster speed than on Ethereum’s layer 1.
This solution is non-custodial, as this layer is like an extension of the main blockchain, allowing throughput of up to 200 transactions per second and also atomic swaps.
The project was announced last August during the EDCON event; moreover, one of its missions is to support various communities thanks to its PoD (Proof of Donation) consensus protocol, which diverts 40% of the value generated, reinvested in the community, and thus organically supporting other projects as well.
The consequences of Tether on Hermez
Certainly having an asset, not to mention a stablecoin, on this layer allows Hermez to become attractive to other projects and users, given that the cost of gas on Ethereum has increased.
This view is also shared by Hermez Network’s technical lead, Jordi Baylina:
“Hermez is excited to welcome Tether tokens as the first of many projects to join the Layer 2 network ahead of our official launch this year. Hermez will bring scalability, speed and lower transaction fees to users while furthering our mission to create a self-sustaining and community minded network”.
Tether will be the first project to land on this layer and operate actively. This will lead to its growth, as stated by Tether’s CTO, Paolo Ardoino:
“Tether is happy to announce that we are among the first projects to be enabled on the Hermez Network. Tether and Hermez both share a desire to keep building next-generation financial products and we feel our growing customer base will appreciate and benefit greatly from this collaboration.”
It is worth mentioning that this layer has its own token, HEZ, which was launched last October and is currently trading at just under $7, with an all-time low of $2.43, an interesting figure considering that the project has not yet been launched.