Tether introduces bridge-free multichain liquidity for legacy USDT networks

0
1

Tether announced on Feb. 11 the Legacy Mesh, a system designed to connect USDT0 and existing USDT deployments across multiple blockchain networks.

The integration spans TRON, Ton, Ethereum, Arbitrum, Ink, and Berachain, creating a unified framework for stablecoin interoperability.

The Legacy Mesh provides connectivity for chains where USDT is already established, enabling the seamless movement of liquidity. Arbitrum serves as the hub chain, linking USDT and USDT0 networks. 

Tether and LayerZero announced USDT0 on Jan. 16, a multichain version of USDT powered by the Omnichain Fungible Token (OFT) standard. OFT enables cross-chain liquidity without intermediary bridges or wrapped assets using a decentralized network of oracles and relayers.

Multichain with no bridges

Existing cross-chain USDT solutions currently rely on third-party bridges, leading to liquidity fragmentation and complex token management. 

According to the announcement, Arbitrum enables native USDT0 interoperability, allowing users to access liquidity pools efficiently. The Legacy Mesh also enhances the depth of the DeFi protocol, positioning Arbitrum as a liquidity hub for stablecoin transfers.

Paolo Ardoino, CEO of Tether, stated:

“The Legacy Mesh is bringing 138 billion USDT together, making it a crucial advancement toward a unified on-chain dollar system. It simplifies liquidity movement from chains like Tron and Ethereum into ecosystems like TON and the USDT0 networks in a fully permissionless and self-sufficient way.”

The Legacy Mesh uses Ethereum, TRON, and TON liquidity pools, facilitating cost-effective and secure transfers via LayerZero messaging. It connects USDT deployments to the largest USDT0 deployment on Arbitrum, bringing together 98% of all USDT within a unified system.

Transfers within the Legacy Mesh and to Arbitrum are live. Multihop transfers from Legacy Mesh chains to USDT0 networks outside Arbitrum, including Ink and Berachain, are planned.

As liquidity moves quickly through multiple decentralized ecosystems, USDT must have a seamless multichain alternative to remain the stablecoin market leader.

Mentioned in this article
Blocscale

Credit: Source link

ads

LEAVE A REPLY

Please enter your comment!
Please enter your name here