Renowned stablecoin Tether and open-source money market protocol Aave have witnessed a surge in demand for Tether (USDt), amid growing interest in decentralised finance (DeFi).
Tether is the fastest growing stablecoin money market in DeFi, with $7.2 million worth of USDt now available on the Aave platform.
This is a useful way of capitalising on on-chain arbitrage opportunities, with it having the potential to power high frequency trading strategies in crypto.
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.
Great thread by @SirSoth91 on how Aave #FlashLoans ⚡️ reward depositors 👇 https://t.co/QjTHsMnRHy
— Aave (@AaveAave) May 29, 2020
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 CEO Stani Kulechov also commended Tether for its ability to grow at a pace that has been unmatched by any other stablecoin.
He added: “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.”