The US dollar-backed stablecoin, Tether (USDT), has been reportedly launched on the OMG Network, previously dubbed OmiseGo. Through OMG-based USDT, Tether hopes to reduce the stress on the major blockchain, Ethereum, while also running with a cheaper transaction fee.
Bitfinex delegates some volume of USDT to OMG Network
Based on plasma, OMG Network is a layer two solution for scaling Ethereum. Having been touted as the best of its kind, the network promises a cheaper transaction fee when compared to the root chain network. Per the report, the OMG-based USDT is the first time the stablecoin will be available on the Ethereum sidechain to enhance performance.
Notably, a significant number of projects run on the Ethereum blockchain, thereby resulting in much load on the network; besides, the highest volume of USDT is issued on Ethereum. Due to this, Tether delegated some of the USDT volumes to the sidechain.
In addition, Tether reportedly consumes the highest gas on Ethereum blockchain. About 8,900 Ethereum crypto (ETH), roughly $1.84 million, was spent as a fee by Tether in the past month, following the ETH Gas Station data report. The total amount guzzled by Tether alone is higher then that of the next five projects on Ethereum.
OMG-based USDT to increase stablecoin performance
Hence, the OMG-based USDT is aimed at curtailing costs and relieve the main network from much load. While commenting on the development, Paolo Ardoino, the CTO of Bitfinex, the company behind the stablecoin said:
By migrating USDT value transfers to the OMG Network, we save costs, drive performance improvements, and relieve pressure on the root chain network.
According to Ardoino, the OMG-based USDT is also expected to enable faster trading opportunities for traders. However, the OMG version of USDT is not available on trading platforms yet, given that the network barely launched, precisely on June 1.