USDT0, the new omnichain stablecoin supported by LayerZero technology and guaranteed by Tether, represents a breakthrough for cross-chain liquidity management.
This innovative token, launched on Ink, the layer-2 of Kraken built on the Optimism Superchain, aims to revolutionize the cryptocurrency landscape by eliminating intermediaries and complex bridges.
A new era for unified liquidity for Tether
USDT0 leverages the Omnichain Fungible Token (OFT) standard by LayerZero, which allows secure and fast transfers between blockchains. Traditionally, USDT required separate implementations on each network, with independent contracts and distinct liquidity pools.
With USDT0, all this is simplified: tokens can be transferred between blockchains seamlessly, consolidating liquidity into a single layer.
This approach reduces operational inefficiencies, improving capital efficiency and opening new opportunities for DeFi applications and cross-chain trading.
- Elimination of bridges and intermediaries: users can transfer USDT0 between blockchains without facing the risks and costs associated with traditional bridge systems.
- Simplified integration: developers can treat USDT0 like any other ERC-20 token, making adoption quick and intuitive.
- Enhanced access to cross-chain liquidity: users enjoy a smoother experience for trading and DeFi applications.
How USDT0 works
At the base of the USDT0 model there is a block and release process that ensures security and reliability:
- Asset lock: USDT is locked on a secure smart contract on the Ethereum Mainnet.
- Emissione sui chain di destinazione: USDT0 is issued in an equivalent amount on the destination blockchain.
- Cross-chain transfers: users can transfer USDT0 between supported blockchains without worrying about liquidity.
- Riscatto: USDT0 can be redeemed by unlocking the original USDT on Ethereum, always maintaining a 1:1 coverage.
This system ensures that each USDT0 is fully backed by reserves on Ethereum, maintaining high standards of security and transparency.
Ink has been selected as the exclusive launch platform for USDT0 thanks to its focus on improving cross-chain interoperability. The collaboration between Ink and Tether aims to remove the technical barriers that often limit the adoption of DeFi solutions.
According to Paolo Ardoino, CEO of Tether:
“USDT0 offers a necessary solution for the frictionless movement of USDT between ecosystems, enhancing the user experience and promoting adoption on a global scale”.
Advantages for developers and users
Thanks to the LayerZero infrastructure, USDT0 allows developers to save time and resources:
- Simplified development: it is not necessary to manage liquidity pools or custom bridges.
- Advanced security: LayerZero technology ensures robustness in cross-chain transfers.
- Future flexibility: USDT0 is designed to adapt to new protocols and blockchains.
USDT0 will not stop at Ink. In the coming months, an expansion towards other networks, such as Berachain and MegaETH, is expected, further expanding the accessibility of the token. This initiative strengthens Tether’s position as a leader in the stablecoin sector and represents a significant step forward towards the standardization of cross-chain liquidity.
Starting from January 16, 2024, Kraken users will be able to deposit and withdraw USDT0 on Ink, marking the beginning of a new era for decentralized finance.
USDT0, with the support of Tether and Kraken, establishes a new standard for cross-chain liquidity.
Its innovative technology not only simplifies the crypto landscape but paves the way for new opportunities for developers and users, consolidating Tether’s role as a pillar of the DeFi world.