Continuing to expand into the DeFi space, Tether collaborates with lending platform Aave, offering lending returns of up to 12.84%.

The most widely used stablecoin in the cryptocurrency market, Tether (USDT), is set to enter the DeFi market through a strategic partnership with the lending protocol Aave. Paolo Ardoino, the CTO of Tether, revealed the future vision: hoping that USDT can take the lead and be widely adopted in the DeFi ecosystem.

• USDT offers an annualized yield of up to 12.84%
• Introduction of Tether Gold (XAUt) this year has reached a record market value

During the digital asset summit hosted today by CryptoCompare, in a keynote speech on the history of stablecoin issuance, Tether announced a collaboration with the open-source, non-custodial protocol Aave.

According to data from the DeFi tracking platform Defiportfolio, USDT offers platform lenders an annualized yield of up to 12.84%, while other stablecoins such as DAI and USDC offer yields of 8% and 4.9% respectively.

Aave is a decentralized, permissionless, and non-custodial lending protocol. It supports 16 different assets in the rapidly growing DeFi platform, and the collaboration with USDT may enhance its liquidity.

Reportedly, the key role of USDT may also extend to Aave's Flash Loan protocol, which allows for uncollateralized loans that are delivered in the same transaction as the trade. The previously reported "Hacker Makes $360,000 in 13 Seconds through Flash Loan" was initiated through a flash loan.

As per a report, stablecoins with limited liquidity actually facilitate successful hacker attacks. USDT, being the stablecoin with the highest market share in the crypto space, may help mitigate such attacks.

Paolo Ardoino commented on the collaboration:

USDT holders can now earn passive income through open lending platforms like Aave, expanding infinite possibilities for the DeFi space and USDT's liquidity. The adoption of USDT in DeFi projects proves its importance in the crypto ecosystem.

Tether Gold (XAUt) Continues to Surge in Market Value

Aside from actively entering the DeFi sector, as previously reported, Tether launched Tether Gold (XAU₮), a crypto stablecoin pegged to gold, in January of this year. Its market value has now exceeded $21 million, surpassing its competitor PAX Gold (PAXG) to become the world's largest gold-backed digital asset.

In February 2019, USDT had a market value of approximately $2 billion, which has now reached $4.9 billion. Its USD stablecoin is issued not only on the Ethereum blockchain but also across public blockchains such as Omni, TRON, Algogrand, Liquid Network, and EOS.

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