USDT Vs. USDC, CVI Platform Takes the Plunge
Both USDT and USDC are stablecoins pegged to the USD. Unlike many cryptocurrencies, the fact that they are tethered to such a stable asset like the USD gives them their name, ‘stablecoins.’ Both of these currencies can be used for trading and investing, and they are some of the leading stablecoins in terms of market capitalization.
While USDT is the more liquid of the two, it has had its fair share of controversies, which explains why many exchanges and platforms have opted to transition from listing USDT to the USDC. The way that the USDT is backed is not entirely transparent, and no one really knows if it is fully backed by cash or not. Hence the controversy. Plus, USDC is known as the safer stablecoin due to its compliance with regulation, and it is the more transparent one because it is backed by cash.
This goes to explain the recent move made by the CVI platform. The team behind CVI has recently migrated all of their USDT pools to USDC. CVI has decided on this move based on the lack of confidence many investors have towards USDT, as well as the benefits it can bring to the user experience. These include improvements to the platform itself. CVI told us, “This move brings major benefits to the users including an improved AMM, which would protect liquidity providers without hurting traders’ experience, it would allow margin trading in the new USDC pools and composability with the upcoming volatility tokens.”
What Are the New Changes?
CVI is opening a new USDC liquidity pool on the Ethereum network, following on from Polygon’s open USDC pool. Those who still bring liquidity to the USDT pool will need to move to USDC, and they can do that by following the pop-up instructions they will receive. At that point, they will stop receiving GOVI rewards from the USDT pool, but will start gaining rewards once they move across.
The CVI Index and Platform
The CVI, which stands for Crypto Volatility Index, is the decentralized VIX, which measures the volatility of a basket of major cryptocurrencies, giving users the chance to hedge their crypto portfolios against market volatility.
The platform is unique in that it allows users to speculate on the volatility of the market, without forecasting the direction of the movement. That means that if the volatility either climbs or falls, then the user can profit from the trade no matter how much the market or position moved. In addition to trading, users can use the Earn feature to gain a share of all the platform’s trading transaction fees by bringing liquidity, e.g., tokens to the platform. Users can also stake their holdings of the native token in exchange for governance rights and can earn an income using arbitrage between the DEX/AMMs and the CVI platform.