Tether USDT0 Debuts on Conflux (CFX) Network for Enhanced Liquidity

Tether has officially launched USDT0 on the Conflux (CFX) network, marking a significant advancement for the stablecoin's multichain capabilities. USDT0, an evolution of the widely used USDT, utilizes LayerZero's Omnichain Fungible Token (OFT) standard to create a unified layer of cross-chain liquidity, according to Conflux Forum.

Advantages of USDT0

Prior to this launch, USDT was available on Conflux as cUSDT via third-party bridges, which were considered bridged assets. The introduction of native USDT0, directly issued by Tether, brings several benefits:

• Lower transaction fees: With USDT0 operating directly on-chain, intermediary bridging processes are eliminated, reducing transaction costs.
• Unified liquidity: USDT0 shares a single liquidity pool across networks like Arbitrum, Optimism, Polygon, and Hyperliquid, preventing liquidity fragmentation.
• Cross-chain interoperability: Tether’s official native bridge allows seamless access to USDT0 across supported chains.
• Enhanced security: Direct management by Tether removes potential security risks associated with third-party bridges.

USDT0 vs. cUSDT

The distinction between USDT0 and the existing cUSDT on Conflux is significant. While cUSDT is a bridged asset reliant on third-party bridge contracts, USDT0 is a native asset issued directly by Tether. This native issuance allows USDT0 to share liquidity across multiple networks, enhancing security and efficiency.

The gradual conversion from cUSDT to USDT0 will occur within the Conflux ecosystem, though cUSDT will remain functional and supported for the time being.

Impact on the Conflux Ecosystem

The launch of USDT0 is a pivotal milestone for Conflux, enhancing its multichain interoperability and stablecoin infrastructure. By improving security and liquidity, USDT0 facilitates seamless integration between centralized and decentralized exchanges (CEXs and DEXs).

As Tether and Conflux deepen their collaboration, the stablecoin environment within Conflux is set to become more efficient and user-friendly, offering an improved on-chain experience.