Tether USD (Native Solana)

USDT

USDT is a native asset to Solana issued by Tether. USDT is a centralized stablecoin backed by USD reserves held by Tether.

Risk Rating
Good
$1.00
-0.43%
Summary
What we like
Provides easy on-ramp and off-ramp to convert your USD into digital dollars that is backed 1:1 by underlying reserves.
What we like less
USDT transferred through the Portal (Wormhole) bridge requires more trust assumptions as the bridge depends on external validators. USDT also has questionable collateral backing and Tether controls the minting and redemption of USDC. Open to censorship as Tether can blacklist any USDT address at will.
What it means for you
USDT is a highly liquid instrument to hedge your portfolio in volatile market conditions and also an easy way to put USD to work for you in DeFi.
Information
Blockchain
  • Solana
Key Metrics
  • Market Cap: $98.5B
  • Fully Diluted Valluation: $98.5B
  • FDV / MC: 1
  • Ranking inside Exponential (among stables): #1
  • Circulating Supply: 98,708,410,047
  • Total Supply: 98,708,410,047
  • Volume (24H): $133.9B
  • ATH: $1.32 (07/24/2018)
  • ATL: $0.57 (03/02/2015)
Risk Assessment
Good
Asset Strength

USDT is a large-cap asset with questionable collateral reserves. This asset depends on a centralized entity for custody services.

USDT is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value.

Asset Tokenomics

USDT has an uncapped supply but has inflation control or burn mechanisms in place. USDT on Solana is backed 1:1 by USD reserves held with a licensed custodian (Tether). USDT is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.

Asset Volatility

USDT is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value. USDT is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.

Dependencies

Tether USD (Native Solana) has no dependencies.

Things to know about USDT

What is USDT?

USDT launched on the Ethereum mainnet in July 2014 by Brock Pierce, Craig Sellars and Reeve Collins. Tether is one of the earliest stablecoins created that pioneered the fiat-collaterlization model that is widely used today. Tether based out of Hong Kong is the sole entity responsible for creating and redeeming tokens as well as maintaining the 1:1 reserve backing.

How does USDT work?

USDT are backed 1:1 by USD reserves held with a licensed custodian (Tether). The process of minting USDT tokens requires a KYC registration process with Tether. After receiving approval from Tether's compliance team, the user sends USD to Tether's bank account. Tether then uses the USDT smart contract to mint an equivalent amount of USDT. Lastly, the newly created USDT are sent to the user's on-chain address, while the deposited USD are held in reserve. The process for redeeming USDT back into USD is the same process but reversed.

Is USDT safe?

USDT is a centralized stablecoin that relies on a proof-of-reserve system to ensure its reserve assets match its circulating supply. However, the token has faced significant controversy since its inception due to its failure to provide audited reserve attestations by an independent auditor and its reserve reports does not specify the exact underlying assets. The reserve composition of USDT is considered riskier as it consists not only of cash and cash equivalents but also other assets and receivables from loans made by Tether to third parties. Further, USDT has the ability to "blacklist" any of its associated addresses at will. When a USDT address is blacklisted, it can no longer receive USDT and all of the USDT controlled by the address can no longer be trasnferred on-chain.

How to buy USDT?

You can buy USDT on a reputable cryptocurrency exchange that lists the asset. Platforms like Binance, Coinbase, and Kraken are popular choices offering ease of use and robust security features. Sign up for an account on your chosen exchange. You'll need to provide some personal information and, in most cases, verify your identity to comply with regulatory requirements. Fund your exchange account using a bank transfer, credit card, or other cryptocurrencies, depending on the options provided by the exchange. Navigate to the trading section of the exchange, search for the USDT pair you want to trade (for example, USDT/USD or USDT/BTC), and enter the amount of USDT you wish to purchase. Review and confirm the transaction details. After purchasing, you can choose to keep your USDT in your exchange account, which is convenient for quick trading. Alternatively, for added security, especially for larger amounts or long-term holding, transfer your USDT to a personal cryptocurrency wallet.

USDT Pools
Raydium SOL-USD Market Making
8.8%
Yield
$9M
TVL
Risk
C
Protocol
Raydium
Chain
Solana
Raydium SOL-USD Market Making
9%
Yield
$1M
TVL
Risk
C
Protocol
Raydium
Chain
Solana