The decentralized finance lending platform Aave adds Tether (USDT) stablecoin to spur growth. Users can now undertake lending or borrowing activities using USDT. Aave has reported that USDT lending activity has already touched $3.67 million in no time.
Aave, the decentralized finance protocol, is ranked sixth amongst the DeFi lenders with a total locked value of approximately $25.5 million. As Aave adds Tether support, the announcement will surely spur the lending and borrowing activity.
Joe Morgan of Tether says that USDT lending solutions are already available on other prominent DeFi platforms. However, Aave brings on-chain borrowing and lending for the first time ever to the general populace. This will expand the role of Tether in widening the service net of DeFi ecosystem and offering more service to the Aave users.
— DAO Maker (@TheDaoMaker) March 11, 2020
Tether’s chief technical officer, Paolo Ardoino, says that they aim to make USDT the most widely used stablecoin on prominent DeFi platforms by playing a pivotal role in financial services. He adds that the story DeFi has just begun, and the future looks promising as Aave adds Tether. It is vital that Tether makes roots in the DeFi space and be a part of the growth story.
Tether has a long way to go before DeFi dominance
DeFi space is new and expanding rapidly. Yet, there are participants who are already in a dominant status mode. The most widely circulated stablecoin in DeFi is DAI, which is responsible for fifty percent of the total loans. This means Tether still has a long way before it can ascertain any influence in the DeFi lending arena.
The U.S. regulators have been pursuing regulatory battles with Tether. The New York Attorney General is currently involved in a legal case with the Tether’s parent firm iFinex. In the recent past, market manipulation accusations were leveled against the USDT which has put the stablecoin in a negative spotlight.
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