The largest stable coin by market capitalization will be the first to enter the ecosystem as Kusama’s Canarian network adds support for the leash before the eventual deployment of parachutes.
Tether Inclusion complements Polkadot’s efforts to attract more Defi applications
Given the renewed surge in cryptocurrency and an aggregate market capitalization of nearly $ 2 trillion, tether (USDT) is playing an increasingly oversized role in many ecosystem activities.
Since Tether has become the stable coin of choice for many subscribers and applications alike, Tether’s market cap has dwarfed $ 40 billion, underscoring its large footprint that vastly outperforms any competing stable coin.
Now that Decentralized Financial (Defi) applications are broadening new horizons while looking for more affordable and scalable platforms, USDT’s support in the stable coin Polkadot ecosystem will open new growth paths.
A partnership to catalyze adoption
Polkadot, in the process of expanding its multi-chain network, has built a reputation as an effective alternative to Ethereum due to the inherent security and scalability provided by its unique parachutes.
USDT compatibility ensures that the many new and existing Defi apps struggling to become parachutes have access to a stable coin that is necessary to facilitate loan and credit protocols, income farming, and more.
Initially, USDT will join Kusama, Polkadot’s Canarian network, which will serve as a more flexible testing ground and sandpit for new projects to test functions with a loose governance. Given the widespread use of tether, the interoperability of this network will help carry value across the blockchain universe.
While Polkadot does not seek to crowd out competing blockchains, the involvement of USDT users and projects allows for a smooth transition between networks. Above all, Tether will ensure more stability in planned Polkadot Defi projects due to its low volatility and value creation capacity. In addition, its properties make it an excellent source of liquidity that is of the utmost importance for running successful Defi protocols.
This new development adds value for both Polkadot and Tether by combining stability with scalability and affordability. Together, these two projects form a promising relationship that can overcome many of the weaknesses that are currently hampering the growth of other networks.
As a result, will we see an increase in tether? Let us know what you think in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Polkadot, Tether
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