WePiggy Has Officially Enabled the Use of USDT as Collateral
WIP11 has been successfully implemented and users can now enable USDT as collateral.
Risk Assessment Update
Tether is the oldest USD backed stablecoin. It initially started as an independent currency built on the Omni blockchain, and progressively moved on the Ethereum blockchain, presumably to take advantage of the DeFi ecosystem.
USDT Smart contract Risk: A-
USDT is the first stablecoin in operation since November 2014 and on this Ethereum contract since November 2017. With over 90 million transactions, USDT is one of the most used coins.
USDT Counterparty Risk: C+
1) In February this year, the NYAG’s office announced the settlement, formally ending the inquiry that kicked off in April 2019. Under the terms of the settlement, Bitfinex and Tether will admit no wrongdoing but will pay $18.5 million and provide quarterly reports describing the composition of Tether’s reserves for the next two years.
2) On March 31 this year, Tether has released an assurance report delivered by accounting firm Moore Cayman that shows that its stablecoins were fully backed as of February.
The report is dated February 28 and has an assurance opinion by Moore Cayman that Tether’s consolidated assets exceeded its consolidated liabilities as of the date.
3) On May 4 this year, CoinBase, known for its compliance and safety, officially listed USDT. So far, all leading
exchanges have supported USDT.
So, the risk of users and the WePiggy protocol suffering huge losses due to this is very small.
USDT Market Risk: A+
USDT is widely available in different exchanges and is the stablecoin with the highest volume. The value of USDT is stable around 1 dollar as it is backed by USD.
USDT Market Overall Rating: A-