Are UST and USDT the same? This article will help you understand the difference between UST and USDT
- 王林Original
- 2024-07-24 18:02:01612browse
There is a difference between UST and USDT. Their differences include: 1. Issuing institution: UST is issued by Terraform Labs, and USDT is issued by Tether. 2. Collateral: UST’s partial collateral is Luna tokens, and USDT claims that its complete collateral is US dollars and other assets. 3. Value stabilization mechanism: UST adopts an algorithmic mechanism, and USDT adopts a centralized mechanism. 4. Supervision: UST is not regulated, and the regulatory environment for USDT is complex. 5. Market size: UST is smaller and USDT is larger.
Is UST the same as USDT?
Answer: No, there is a difference between UST and USDT.
Detailed explanation:
UST and USDT are both stablecoins anchored to the value of the US dollar, but they have significant differences:
1. Issuing organization:
- UST: Issued by Terraform Labs, is A decentralized blockchain project.
- USDT: Issued by Tether, a centralized company located in Hong Kong.
2. Collateral:
- UST: Part of the collateral is Luna tokens, the native token of the Terra blockchain.
- USDT: Claims to be fully collateralized by USD and other traditional assets, but lacks independent auditing.
3. Value stabilization mechanism:
- UST: Adopts an algorithmic stabilization mechanism to maintain a 1:1 exchange rate with the US dollar by adjusting the supply of UST.
- USDT: Using a centralized mechanism, Tether is responsible for managing its reserves and ensuring they are pegged to the value of the US dollar.
4. Supervision:
- UST: Not regulated by any regulatory agency.
- USDT: The regulatory environment is complex and the U.S. Securities and Exchange Commission (SEC) is investigating its reserves.
5. Market size:
- UST: The market size is small, with a market value of approximately US$10 billion.
- USDT: With a large market size and a market value of more than 70 billion US dollars, it is the most popular stablecoin in the world.
Summary:
Both UST and USDT are stablecoins, but they have fundamental differences, including issuing institutions, collateral, value stabilization mechanisms, regulation and market size. Therefore, they are not the same thing.
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