What is the difference between USDT and UST?

3 answers

• Nov 24, 2021 · 3 years ago
  USDT and UST are both stablecoins, but they are issued by different entities. USDT, also known as Tether, is issued by Tether Limited, a company that claims to have a 1:1 reserve of US dollars for every USDT token in circulation. On the other hand, UST is issued by Terra, a blockchain platform that aims to create a stablecoin ecosystem. While both tokens aim to maintain a stable value, the key difference lies in their underlying platforms and issuers.
  455228
• Nov 24, 2021 · 3 years ago
  USDT and UST are similar in that they are both stablecoins pegged to the US dollar. However, USDT is an ERC-20 token built on the Ethereum blockchain, while UST is an algorithmic stablecoin built on the Terra blockchain. This means that USDT relies on the Ethereum network for its transactions, while UST operates on the Terra network. Additionally, USDT has faced some controversy regarding its transparency and reserve backing, while UST has gained popularity for its innovative approach to stability.
  503168
• Nov 24, 2021 · 3 years ago
  USDT and UST are stablecoins that serve similar purposes, but they have different mechanisms for maintaining their stability. USDT achieves its price stability by backing each token with a corresponding amount of US dollars held in reserve. On the other hand, UST uses an algorithmic mechanism to maintain its peg to the US dollar. This algorithm adjusts the supply of UST based on demand, ensuring that the price remains stable. While both approaches have their pros and cons, they provide users with options depending on their preferences and risk tolerance.
  560140