What is Tether? The Tether definition is pretty simple. Tether (USDT) is a stablecoin cryptocurrency, with each token aimed at monitoring the value of 1 U.S. dollar. Property pegged to the value of national currencies (fiat currencies) are referred to as stablecoins. Participants can sell different cryptocurrencies for USDT to protect in opposition to volatility whereas maintaining the power to ship the asset to private wallets or storage. Ethereum, as well as different blockchains, host USDT.

If you’re desirous about taking part in a specific blockchain or DeFi protocol, then you’ll want to ensure the stablecoin you choose is supported on that network. USDC and USDT can both be used for lending, staking, and offering liquidity for buying and selling pairs, though the returns and functionality for each could vary.

Tether has been the target of quite a lot of FUD on account of its murky stability sheet and lack of a public audit. The company has repeatedly been fined for deceptive statements across the state of its books. After Tether released a first breakdown of its balances, it came beneath much more scrutiny from regulators over its claims that all issued stablecoins are fully backed by dollar reserves.