Following recent developments within the sphere of stablecoins, Tether (USDT) has announced that it is coordinating a series swap to transfer USDT assets from Tron’s TRC-20 to Ethereum and Avalanche’s blockchain.
Inside a tweet, Tether stated that 1 billion USDT is going to be moved from Tron’s blockchain to Ethereum. However, yet another 20 million USDT is going to be transformed into Avalanche. Based on Tether, this can not alter the total way to obtain the stablecoin.
In couple of minutes Tether will coordinate with a third party to carry out a chain swap, converting from Tron TRC20 to Ethereum ERC20, for 1B USDt and from Tron TRC20 to Avalanche, for 20M USDt. The #tether total supply won’t change in this process.
— Tether (@Tether_to) May 12, 2022
The announcement came among fears of the stablecoin meltdown following the recent TerraUSD (UST) and Terra (LUNA) debacle. Aside from this, USDT also demonstrated cost fluctuations, sliding below $.99 on the majority of exchange platforms on Thursday. Consequently, many expressed concerns within the most-traded stablecoin showing indications of struggle.
However, inside a Cointelegraph interview, Tether’s chief technology officer Paolo Ardoino assured traders that USDT isn’t like algorithmic stablecoins for example UST. Ardoino stated that Tether includes a “strong, conservative and liquid portfolio that includes cash and funds equivalents.” Including treasury bills, money market funds and commercial paper holdings.
Ardoino also stated the ongoing fear, uncertainty or doubt, or FUD, surrounding stablecoins has become a cash-making stream for many traders. He described that some firms are purchasing USDT below $1 on some exchanges and therefore are redeeming it for above $1 on Bitfinex and also the Tether website.
Meanwhile, Terra founder Do Kwon lately shared intends to restore the UST stablecoin peg. Kwon described that before re-pegging UST, the road forward is to “absorb the stablecoin supply that wishes to exit.”
Due to this, Kwon endorsed the rise from the base pool from 50 million to 100 million special drawing legal rights. Furthermore, the Terra founder stated that they’ll decrease PoolRecoveryBlock from 36 to 18. Kwon stated this will allow the system “absorb UST more rapidly.”