Hello Maker community,
This is my proposal to include Tether USD (USDT) as a collateral asset for MCD.
Note: This proposal refers to the ERC-20 implementation of Tether USD.
1) Who is the interested party for this collateral application?
Cole Kennelly (@ColeGotTweets)
2) Provide a brief high-level overview of the project, with a focus on the applying collateral token.
USDT is a collateralized ERC-20 token that is pegged to the US Dollar. USDT is the largest stablecoin in the crypto ecosystem in terms of market capitalization and supply.
3) Provide a brief history of the project.
The precursor to Tether, Realcoin, was announced in July 2014. The first Realcoin tokens were issued in October 2014 on the Bitcoin blockchain using the Omni Layer Protocol. In November 2014, the Realcoin project was renamed to Tether. USDT was deployed to the Ethereum network on November 28, 2017 and formally announced on January 5, 2018. Since launch, ~1.5 million unique addresses have made more than 40 million USDT transfers.
4) Link any available audits of the project. Both procedural and smart contract focused audits.
5) Link to any active communities relating to your project.
6) How is the applying collateral type currently used?
USDT is used by businesses, such as exchanges, wallets, etc., to use US Dollars on the Ethereum blockchain. USDT is also used as a collateral asset by leading decentralized finance protocols and applications built on the Ethereum blockchain, such as Compound.
7) Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
Tether Holdings Limited bears responsibility for USDT. Tether Holdings Limited is a British Virgin Islands-based entity.
8) Where does exchange for the asset occur?
Exchange of USDT occurs on approximately 100 different secondary exchanges including centralized exchanges such as Binance, OKEx, Bitfinex, Kraken, FTX, and KuCoin. The entire list of exchanges where USDT trades can be found here.