On July 15, Tether announced the integration of USDT0, a version omnichain (Multicadena) of its USDT stablecoin, in Rootstock, a Bitcoin side chain.
USDT0, backed 1: 1 per USDT in Ethereum, arrives at rootstock through the standard Opht (Omnichain fungible token) of Layerzero, a technology that enables active as USDT0 They work unified in various cryptocurrency networks.
“Until now, Stablecoins liquidity in Rootstock was fragmented, limiting the depth and reach of their markets,” they explained from Tether.
The implementation of the version Onmichain of USDT in rootstock points to solve the liquidity fragmentation problem indicated by Tether. Today, the stablecoins are scattered in multiple wrapped versions, limiting the depth of the markets.
Eliminating the fragmentation that exists with wrapped versions of USDT reduces the complexity and risks of arbitration. This allows intelligent contracts (of rootstock) to operate more efficiently, since They do not need to handle multiple tokens with different backups, formats and conversion mechanisms.
For the Tradersthis unification would mean “narrower spreads and deeper orders books”, which improves the liquidity and trading experience, detail from Tether.
For developers, USDT0 would simplify treasury management by eliminating the need to handle several versions of Stablecoins, facilitating the creation of finance applications in Bitcoin (BTCFI).
As cryptootics reported, rootstock is a side chain that bets on Combine Bitcoin’s safety with the compatibility of the Ethereum virtual machine (EVM), allowing developers to display intelligent contracts written in Solidity (Ethereum’s programming language).
This means that rootstock acts as an extension of the bitcoin protocol, maintaining its safety While adding capabilities such as intelligent contractswhich are not native in the main bitcoin chain.
In this Sidechain, for example, those contracts can now use USDT0 as a universal USDT stablecoin for transactions, loans, and other purposes. This means that an intelligent contract that manages a loan protocol can accept USDT0 as collateral or means of payment, facilitating stable and predictable operations.
However, the universal usefulness of USDT0 will depend on the choice of users and if other versions wrapped in the stablecoin within the Sidechain capture liquidity, which would deepen the fragmentation.
