Kava to get its own USDT Tether
To understand the implication of this development one has to understand the importance of stablecoins.
Stablecoins are a must for the crypto markets to operate. They are the essential peg for investors and traders to trade and exchange their crypto against these stablecoins.
This happens to be the way to go not only to play a trend, volatility but also to preserve markets when smart investors feel a crash or a correction is coming to the crypto markets.
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Collectively stablecoins have a market cap of $126,303,168,869 at the time of writing this post.
The importance of Tether USDT
Out of the entire basket of stablecoins USDT Tether plays a very important part.
Tether USDT is a Top leading stable con with a current market cap of $83,828,402,814
at the time of writing this post.
Tether holds the third position in the crypto space and natively operates on a number of blockchains namely
-Avalanche,
- Algorand,
- Bitcoin Cash's Simple Ledger Protocol (SLP),
- Ethereum,
- EOS,
- Liquid Network,
- Omni,
- Polygon,
- Tezos,
- Tron,
- Solana and
- Statemine
The USDT stablecoin presence on these blockchains adds ease and convenience of trade to these blockchains.
Tether USDT is a stable coin that is an asset-backed asset. This is done so that the price of the stablecoin remains constant or more or less in a range.
Tether USDT is considered one of the most trusted as well as secure stablecoins. It derives its trust from the transparency and 1: 1 asset backing to the U.S Dollar.
Tether USDT which is one of the world’s most used, liquid, secure, and transparent stablecoin, has successfully launched its new avatar via Kava on Cosmos.
This event is a major achievement & milestone for Kava that would help in the expansion of the Cosmos DeFi ecosystem.
Adding Tether to Kava would act as a liquidity boost of the USDT stablecoin to the Cosmos' Inter-Blockchain Communication (IBC) and Ethereum Virtual Machine (EVM) ecosystems.
The cosmos ecosystem has always shown a lot of potential however all this while a lack of USDT has been hampering the opportunity for its users as well as developers to take advantage of the price variations and trade tokens without using external exchanges or external bridges.
This has been a speed breaker on the road to the growth of this crypto ecosystem as it reduces the opportunity to grow their crypto portfolio by way of playing the volatility.
Native USDT provides a widely accepted, secure, and canonical stablecoin to Cosmos DApp and app chains, as well as EVM DApp users.
Scott Stuart who is the co-founder of Kava is quite upbeat about this new development.
Unlike third-party external bridging solutions that create fragmented pools of hidden assets, with the release of Kava 14, USDT natively issued on Kava can be moved between IBC and EVM blockchains via “internal bridging” with security controls. Access and restrictions drastically reduce attacks.
The use of third party bridges is already being used by the current users of the cosmos ecosystem. However, such a mechanism has an internal flaw that fragmented assets get left behind in every bridge transaction and this can add up to created fragmented pools of assets which can cause loss of value to the users carrying out the bridge transactions.
By way of having a native USDT, it would be a convenient and effective way to move crypto between IBC and EVM by way of using internal bridging.
This would also make the transactions more secure and enhance the security of the ecosystem thus reducing external attack vulnerabilities.
The effect of USDT’s integration with Kava
Tether as a dominant stablecoin already has a market dominance of around 65% on account of its good reputation it will also offer greater security and reliability for users and developers of the Kava blockchain
Kava is already an ultra-fast and secure Layer 1 blockchain that combines the development power of Ethereum with the speed and interoperability of Cosmos on a single, scalable network with the Tether USDT integration the value and importance of this blockchain would go up further.
The Kava team is dedicated and committed to helping grow the ecosystem and infusing new ecosystem on a continuous basis this has made Kava the ecosystem of choice for both the developers as well as the users.
HBD a gem under the radar
If we are talking about stablecoins and trust then how can one not mention HBD or the Hive backed Dollar. It is pegged to Hive the native token of the Hive blockchain in such a way that 1 HBD is equal to one dollar worth of Hive.
In addition, it is a stable coin that can be transferred between wallets at zero transaction fee.
Put it into savings and you get a 20% rate of annual return.
HBD interest rate: 20.00% APR should surely put HBD on the radar of any serious crypto investor.
Posted Using LeoFinance Alpha
