What is USDT
USDT (Tether) is a stablecoin designed to track the US dollar. It became deeply integrated into crypto exchange infrastructure and is still one of the most traded assets in the market.
Who issues USDT
USDT is issued by Tether Limited. It was launched in 2014 and became a core settlement token for exchange-based trading before many newer stablecoins reached broad adoption.
How USDT works
USDT is designed around a reserve-backed model intended to keep price near one dollar. Reserve composition and reporting are key factors users evaluate when assessing stablecoin risk.
Why USDT became dominant in trading
USDT benefited from early exchange integration, broad global accessibility, and persistent use as a quote asset in major trading pairs. This created durable liquidity across multiple blockchains and venues.
USDT on Solana
USDT is available on Solana as an SPL token and can be used for transfers, swaps, and liquidity interactions. Like all Solana transactions, execution still requires a small SOL fee.
Why Monavo uses USDC as the primary stable routing asset
Monavo supports USDT, but USDC is often the primary stable routing leg because Solana DeFi liquidity is frequently deeper around USDC pools. This is a routing-efficiency decision, not a claim that USDT is unusable.
Why Solana DeFi historically used USDC
Early Solana liquidity infrastructure and pool design often centered around USDC-denominated markets. As routing engines evolved, those pools often remained strong anchors for low-slippage paths.
USDT vs USDC
Both assets are major stablecoins. Practical execution quality depends on current route liquidity, not a fixed ranking. For each swap, users should compare quote output, expected slippage, and route structure.
Stablecoin risks
Stablecoins still include issuer, regulatory, and market-stress risks. In stressed conditions, temporary deviations from target value can occur, so users should treat stablecoin holdings with risk awareness.