Optimism price

USDT0 is a cross-chain stablecoin launched by Tether based on LayerZero technology, specifically designed to address the liquidity fragmentation and high-cost cross-chain issues of USDT across different blockchains. Below is a detailed answer to your question, covering the uses, technical principles, issuance volume, operating chains, and cross-chain burn/mint mechanisms of USDT0. 1. What does USDT0 do? Uses: Address cross-chain liquidity fragmentation: Traditional USDT operates independently on multiple blockchains (such as Ethereum's ERC-20, Tron’s TRC-20, etc.), leading to dispersed liquidity, and cross-chain transfers require bridging, which is costly and complex. USDT0 utilizes LayerZero's Omnichain Fungible Token (OFT) standard to unify liquidity and achieve seamless cross-chain transfers. Reduce transaction costs: The design goal of USDT0 is to enable low-cost or even near-zero fee cross-chain transfers, especially on Layer-2 or high-performance chains. Enhance DeFi and user experience: By simplifying cross-chain operations, USDT0 facilitates use in decentralized finance (DeFi) protocols, exchanges, and payment scenarios, supporting both retail and institutional users. Standardizing cross-chain stablecoins: Tether aims for USDT0 to become the standard for cross-chain stablecoins, potentially expanding to other assets in the future (such as XAUT, Tether's gold-backed token). Differences from traditional USDT: Traditional USDT has independent implementations on each chain (for example, the ERC-20 and TRC-20 versions are incompatible), requiring bridging for cross-chain transfers. USDT0 uses a unified cross-chain mechanism, allowing the same token to flow across multiple chains without traditional bridging, reducing costs and risks. 2. Technical principles of USDT0 The core of USDT0 is LayerZero's OFT standard, which achieves cross-chain functionality through the following mechanisms: Lock-and-Mint: Locking: Users deposit USDT into a smart contract on the source chain (usually the Ethereum mainnet) to lock it. Minting: An equivalent amount of USDT0 is minted on the target chain (such as Ink, Arbitrum, Berachain, etc.) at a 1:1 ratio. Burning and unlocking: When users need to transfer USDT0 back to Ethereum or another chain, USDT0 on the target chain is burned, and USDT on the source chain is unlocked. This ensures that the total supply of USDT0 remains consistent with the locked USDT, maintaining a 1:1 peg. LayerZero protocol: LayerZero is a cross-chain messaging protocol that verifies transactions through a decentralized network of oracles and relayers, ensuring the security and transparency of cross-chain transfers. The OFT standard allows tokens to move seamlessly across different chains without the need for traditional bridging intermediate assets (such as wrapped USDT) or liquidity pools. Zero slippage transfers: USDT0's cross-chain transfers guarantee that users receive the exact amount of tokens (for example, transferring 10,000 USDT0 to the target chain, the recipient receives 10,000 USDT0 with no slippage loss). Security: Eliminates the risks of traditional bridging (such as centralized liquidity pools or vulnerabilities in bridging contracts). Through LayerZero's end-to-end message verification, it ensures that only authorized transfers can be executed. EVM compatibility: USDT0 is compatible with the ERC-20 standard, allowing developers to easily integrate it into DeFi protocols or wallets. Burn/Mint mechanism: Burning: On the target chain, USDT0 is burned to trigger the unlocking of USDT on the source chain. Minting: New USDT0 is minted on another chain based on the locked USDT reserves. For example: A user transfers 1,000 USDT from Ethereum to Ink, USDT is locked on Ethereum, and 1,000 USDT0 is minted on Ink; if transferred to Arbitrum, USDT0 on Ink is burned, and new 1,000 USDT0 is minted on Arbitrum. This mechanism ensures the efficiency and security of cross-chain transfers. 3. Issuance volume of USDT0 Claimed 10 billion: You mentioned "USDT0 has issued 10 billion," which may stem from a post on X. For instance, there are posts claiming that USDT0 transferred 10 billion USDT0 on its first day of launch, involving networks like Ethereum, Arbitrum, Unichain, etc. However, these posts did not provide conclusive evidence and may contain exaggerated or unverified information. Actual issuance volume: As of August 2025, no official data has been disclosed regarding the specific issuance volume of USDT0. Posts on X mention that the circulating supply of USDT0 reached 1.7 billion USD (approximately 2.1% of the total USDT on Ethereum), second only to Binance's USDT holdings. Considering that the total market cap of USDT is about 163 billion USD, the supply of USDT0 as a cross-chain version may be far below 10 billion and primarily depends on cross-chain demand and locked amounts. Dynamic supply: The supply of USDT0 is dynamically adjusted based on locking and minting. For example, if a user locks 1 billion USDT for cross-chain use, the minting amount of USDT0 increases accordingly, but the total value remains pegged 1:1 to the locked USDT. Conclusion: The claim of 10 billion may originate from unofficial statements on social media, lacking reliable sources to support it. The current circulating volume of USDT0 is more likely in the billions, and specific data will need to wait for official reports from Tether or LayerZero. 4. On which chains is USDT0 operating? USDT0 has been deployed or is planned to be deployed on the following blockchains: Kraken's Ink (Layer-2 network): USDT0 was launched on Ink on January 16, 2025, which is a Layer-2 network based on Optimism Superchain, focusing on low-cost transactions and institutional liquidity. 📷📷📷 Arbitrum: A Layer-2 network on Ethereum that has supported deposits, withdrawals, and cross-chain exchanges of USDT0. 📷 Berachain: An EVM-compatible Layer-1 blockchain that uses the Proof of Liquidity (PoL) consensus mechanism and plans to support USDT0. 📷📷📷 MegaETH: A high-performance blockchain that supports 100,000 transactions per second and plans to integrate USDT0, suitable for DeFi and payment scenarios. 📷📷📷 Other chains: Posts on X mention that USDT0 has expanded to Ethereum, Unichain, Flare, HyperliquidX, Optimism, Sei Network, Corn, Rootstock, etc., totaling 16 chains. However, support for some chains (such as Flare, HyperliquidX) has not yet been officially confirmed and should be approached with caution. Future expansion: Tether plans to promote USDT0 to more blockchains, further enhancing its cross-chain coverage. 📷📷 Operating mechanism: USDT0 primarily uses the Ethereum mainnet as the "mother chain" for locking USDT, while other chains (such as Ink, Arbitrum) serve as target chains for minting USDT0. LayerZero's cross-chain messaging protocol ensures seamless communication between different chains, eliminating the complexities of traditional bridging. 5. Cross-chain exchange mechanism of USDT0 The core of USDT0's cross-chain exchange is to address the pain points of traditional bridging (high fees, delays, risks). Here is a detailed explanation of how it works: Pain points of traditional bridging: Traditional USDT cross-chain transfers require bridging (such as Wormhole or Axelar), involving burning USDT on the source chain and minting wrapped USDT (such as USDT.e) on the target chain, a complex process with high fees (especially on Ethereum). Bridging relies on liquidity pools, which may face slippage or hacking risks (historically, many bridges have been attacked, resulting in losses of billions of dollars). USDT0's solution: Unified liquidity: USDT0 unifies USDT liquidity into a cross-chain layer through LayerZero's OFT standard, eliminating the dependence on independent liquidity pools. Locking/Minting process: Users lock USDT on Ethereum (depositing into a smart contract). LayerZero's oracles and relayers verify transactions and notify the target chain. The target chain (such as Ink) mints an equivalent amount of USDT0. If transferring to another chain (such as Arbitrum), USDT0 on the target chain is burned, and new USDT0 is minted on the new chain. If returning to Ethereum, USDT0 is burned, and USDT on Ethereum is unlocked. Zero slippage and low cost: There is no slippage during the transfer process (sending 10,000 USDT0, receiving 10,000 USDT0), and the fees are extremely low (posts on X claim the cost per dollar transfer is about 0.0000575612 USD). Security: LayerZero's decentralized verification mechanism (through oracles and relayers) reduces bridging risks, and smart contracts ensure that only authorized transfers are valid. 📷📷 Advantages: Low cost: Compared to the high gas fees of Ethereum ERC-20 USDT (5-20 USDT), USDT0's fees on Layer-2 or high-performance chains are close to zero. Fast: LayerZero's messaging protocol accelerates cross-chain confirmations, typically completing in seconds. Simplified development: Developers do not need to customize bridging or liquidity pools for each chain; USDT0, as an ERC-20 compatible token, can be integrated directly. 6. Relationship between USDT0 and Stable/Plasma chains Your previous question mentioned Tether's proprietary chain Stable/Plasma, while USDT0 is currently primarily based on LayerZero technology and operates on existing chains (such as Ink, Arbitrum). Stable/Plasma is another Tether project, planned as a dedicated blockchain for USDT, which may integrate USDT0 in the future: Stable/Plasma: An independent Layer-1 blockchain that uses USDT as the gas token, aiming to achieve zero-fee transfers. Plasma subchains optimize small transactions, similar to the Lightning Network. Relationship with USDT0: Currently, USDT0 relies on LayerZero and existing chains (such as Ink), but may migrate or partially integrate into Stable/Plasma in the future to leverage its zero-fee advantage. However, as of August 2025, the Stable chain is still in the testnet phase and has not officially supported USDT0. 📷 7. Current status and considerations Issuance volume: The circulating volume of USDT0 may be around 1.7 billion USD (data from posts on X), far below 10 billion, and specific confirmation is needed from official sources. Operating chains: Confirmed deployments on Ink, Arbitrum, with plans to expand to Berachain, MegaETH, etc. Other chains mentioned in posts on X (such as Flare, HyperliquidX) require further verification. Transaction fees: On Layer-2 chains (such as Ink, Arbitrum), USDT0 transfer fees are close to zero (below 0.01 USDT), but locking/unlocking on the Ethereum mainnet may still incur gas fees. Risks: Cross-chain security: Although LayerZero's OFT standard reduces bridging risks, smart contracts may still have vulnerabilities, requiring caution. Regulatory pressure: USDT and USDT0 face global regulatory scrutiny (such as the EU's MiCA regulations), which may impact their expansion. 📷 Accuracy of information: Claims about the 10 billion transfer volume or support for 16 chains in posts on X may be exaggerated, and official sources (such as Tether or LayerZero's official website) should be referenced. 8. How to obtain USDT0 Exchanges: Directly purchase or deposit USDT0 on exchanges that support it (such as Kraken), which has supported deposits/withdrawals of USDT0 on Ink. 📷📷 Cross-chain bridging: Convert existing USDT to USDT0 through DeFi platforms using LayerZero protocol (such as Stargate). Wallets: Wallets that support USDT0 (such as Unity Wallet) can be used for cross-chain transfers and exchanges. 📷 9. Summary Uses of USDT0: Address the cross-chain liquidity fragmentation issue of USDT, providing low-cost, zero-slippage cross-chain transfers, enhancing usability in DeFi and payment scenarios. Technical principles: Based on LayerZero's OFT standard, by locking USDT (on the Ethereum mainnet) and minting USDT0 on the target chain, achieving a burn/mint cross-chain mechanism with low fees and high security. Issuance volume: Current circulating volume is about 1.7 billion USD (unofficial data), the claim of 10 billion may be inaccurate and requires official confirmation. Operating chains: Deployed on Ink, Arbitrum, with plans to expand to Berachain, MegaETH, etc., other chains mentioned in posts on X need verification. Relationship with Stable/Plasma: USDT0 currently relies on LayerZero, and may integrate into Tether's Stable/Plasma chain in the future to achieve zero-fee goals.

Synthetix is discontinuing support for Optimism. All remaining L2 products, except for Debt Jubilee staking on Optimism, will be deprecated in the coming weeks as we fully transition to Ethereum Mainnet. For dates and details, check the blog: 🧵🔽