Hello Jet team, I have supplying some liquidity to Jet since past few weeks. Crafting content on Twitter as well.
Saw the recent news of CFTC’s settlement with Tether, was wondering if we could add Tether as a collateral ASAP.
I think we all know how valuable tether is to space, adding it should be a no-brainer and strong priority for JET DAO.
i’d much rather jet add usdt than srm to be frank
Glad to someone speaking their mind rationally.
I think we need to do some risk parameterization around this before saying it’s a sure thing. How do we start thinking specifically what stables we add? Let’s talk about this.
Tether is the most used stablecoin.
Massive pairings across crypto markets.
Pretty much the backbone of crypto.
I really don’t know what “risk parameterization” we are talking about here?
p.s. even Sam backs USDT in public, and so does CZ.
Again what’s the risk with tether? & how does other stable coins have “risk supremacy” over it?
Just add one more thing…
Bringing Tether on to Solana was touted as a crowning achievement back in the day by the Solana team.
Slippage vs exposure is probably a good start. What markets can your liquidators easily arb? See how much of coin X can be sold quickly without moving the market. If it’s not much, you can’t afford much exposure to that coin without Jet (as backstop) or users (through getting liquidated more aggressively) taking on more risk.
So it all should start with a question of how far out on the risk curve you want to go as a protocol
There’s some speculation that the “commercial paper” making up a large part of Tether reserves are from loans to crypto exchanges and market makers like FTX, Alameda, and Binance. Based on disclosed holdings, Tether should be one of the largest buyers of USD commercial paper, but somehow none of the main dealers are aware of their presence: Tether’s commercial paper disclosure places it among global giants | Financial Times. If this is true, then it would be no surprise for these exchanges to publicly support USDT.
USDT’s terms of service are pretty deficient versus competitors, allowing permanent suspension of redemption as well as redemption in kind for non cash assets. Compare with other tokens like USDP or GUSD where funds are held in trust accounts for benefit of token holders, and reserves are held in ultra-low risk assets like bank deposits and treasury bills. USDC is also moving in this direction of improving reserve quality. Tether recently has improved their transparency and supposedly reduced their commercial paper holdings, but from a risk perspective I think USDT is still by far the most risky fiat-collateralized stablecoin.
A bit late to the party…
I am not against supporting USDT, though I reckon UST has greater advantages overall.
Be the among the 1st to do so on Solana – Port did release and currently has $3.5M
One negative is that it might attract less initial liquidity vs USDT (Port has $7M USDT for instance)
But long term, the #1 growing stablecoin is UST & more and more bridges (not specific to token bridges…) between Terra and Solana are getting created and are gaining traction
For instance, I saw this morning a proposal from terra community to allocate rewards to Solana protocols – Is anyone building a UST-style stablecoin for Solana? - Governance - Terra Research Forum
Here they list Solend, would be worth it to have jet being the one
Also narrative wise, supporting UST makes more sense.
Do you prefer a (the only one) decentralized USD or the one that has been fudded for the last xyz years?
After this whole UST fiasco, I am wondering if we should again converse on this topic to add USDT support. So, new members and old members, have your views changed?
Will probably craft a governance proposal once the whole process of creating governance proposal is out…
Support this discussion!
Also when you are ready to create your welcomed governance proposal for USDT, you can use this markdown file we created to make this application process as easy for you as possible!
Check out our governance process here if you are not already familiar (-:
stay tuned on our socials for updates on our first governance vote starting w a Jet Forum poll! (v soon!)
USDT is collateral on all the marquee protocols: MakerDAO, Compound, AAVE.
I personally feel the risk is quite low.
Agree, it’s also not algorithmically backed (which is a good thing!).
Agree with @Winfred and @wil here. MakerDAO in particular has a reputation of being conservative and steady. I think it would feel kind of wrong to not have USDT in the mix.
I think USDT would be a great addition - It’s proved itself for several years.
I agree with the point by @wil
Right now, USDT is a widely used token esp by many blue chips, and we should follow accordingly. Even though it has its issues, USDT has worked for the past few years. After the UST fiasco, we should play it safe and steady.
Is anyone on this thread interested in helping to together a collateral onboarding application on behalf of USDT (or know anyone who is?)
Would be willing to work with someone to create the USDT application.
Edit: Started working on this now. Anyone is free to join in.
@Bobby_StableNode thanks for kicking off! Do you have it shared in a public doc to start?