ROAD TOWN, British Virgin Islands, May 28, 2020 9:00 AM BST — Tether, the blockchain-enabled platform that powers the largest stablecoin by market capitalization, and Aave Protocol, an open source and non-custodial money market protocol, have witnessed a surge in demand for Tether (USDt), amid growing interest in decentralised finance (DeFi).
USDt is the biggest and fastest growing stablecoin money market in DeFi, with $7.2 million worth of USDt now available on the Aave platform. USDt is enabling a stream of innovative DeFi financing products on Aave, which has a total liquidity of $70 million with about $60 million of locked assets in the smart contract.
Notably, there has been a ready take up of USDt in Flash Loans, which enable 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 can be used to take advantage of on-chain arbitrage opportunities, compete for on-chain liquidations and move open positions between DeFi platforms. The products could even power High Frequency Trading strategies in crypto.
Use of Tether (USDt) on the Aave platform has been powered by lending products that represent the building blocks of a nascent alternative financial system. According to data provided by Aave, USDt also offers the best yield for lenders in the marketplace. USDt on average offers depositors a rate of 6.37% APY interest on their USDT without having to give up custody.
“Aave has shown itself to be the safest place for institutions to deposit their USDt,” said Stani Kulechov, CEO of Aave. “ 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.”
“USDt is playing an important role in boosting liquidity across the DeFi space,” said Paolo Ardoino, CTO at Tether. “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.”
Aave Protocol’s market size has now surpassed $69 million, with the platform in fourth place on Defipulse, an analytics and rankings hub tracking key metrics for DeFi. 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.
USDt’s total market capitalization has more than quadrupled from about $2 billion in February 2019 to reach $9 billion. 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.
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.
Media Contact for Tether:
Senior Public Relations Manager
Media contact for Aave:
Head of Marketing