After a Slow Start, Tether Sees Increasing Usage in DeFi – Cointelegraph

Tether (USDT) usage in decentralized finance (DeFi) appears to be growing, as lending protocol Aave reports over $7.2 million in USDT locked, out of a reported $60 million in total assets.

This result comes two months after the initial launch of Tether on the platform, which offers a wide range of other stablecoins including Dai (DAI), USD Coin (USDC), sUSD and TrueUSD (TUSD).

Tether says that a notable portion of that usage is made of flash loans, a loan that does not require collateral as long as it’s returned in the same block.

The interest rate on depositing Tether is one of the highest among competitors, with a 30-day average of 6.2% annual interest. This is significantly higher than DAI’s average of 3.2%, but falls behind sUSD’s 8.9% average APY. Nevertheless, as of press time all stablecoins show instantaneous interest rates of around 3.5%.

Tether sees increased usage

Aave has quickly risen through the ranks of DeFi protocols, now positioned fourth by value locked according to DefiPulse, just behind its main competitor Compound.

Compound itself has also added USDT through a community governance poll, enacted on May 1. However, Compound does not let the stablecoin be used as collateral, similar to Aave.

Tether is currently by far the most used and most issued stablecoin, recently surpassing Source…