Topic: How to exchange 100 usd for 100 USDT directly by Tether reserves? (Read 64 times)
After this month's UST LUNA phenomenon, the $1 : 1 USDT reserve doesn't look convincing either. Therefore, as explained by vv181 it is clear enough for you to understand. And when there is no USDT circulating reserve pegged to the Dollar, USDT automatically has no 1 to 1 value.
I don't precisely understand what your question is but let me try.
Not inherently the way Tether reserves compound, but assume that If user A depositing $100 into Tether, then A got 100 USDT, in order to maintain the USDT price stability, Tether must align their reserve with how many USDT circulation that exists. In that way, the 1-1 parity should be realised since the total USDT circulation aligns with the Tether reserve.
Tether reserve: $100
USDT circulation: 100 USDT
Not inherently the way Tether reserves compound, but assume that If user A depositing $100 into Tether, then A got 100 USDT, in order to maintain the USDT price stability, Tether must align their reserve with how many USDT circulation that exists. In that way, the 1-1 parity should be realised since the total USDT circulation aligns with the Tether reserve.
Tether reserve: $100
USDT circulation: 100 USDT
Hello, I read articles like this that "If a user deposits $100 in the Tether reserve, then in keeping with a 1-to-1 dollar parity, they will receive 100 Tether tokens".
I would like to ask where is this possibility.
Thank you for reply.
I would like to ask where is this possibility.
Thank you for reply.
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