What Is Compound USDT (CUSDT)?

Compound USDT is a stablecoin on the Compound protocol. The stablecoins have stable prices, and their value mimics that of the traditional currencies. The Compound protocol has issued USDT as a form of ERC-20  token known as cTokens.

Compound is an algorithmic and autonomous protocol on the Ethereum blockchain designed to unlock and establish money markets. According to the whitepaper, a Compound money market is a ledger that allows Ethereum accounts to borrow or supply assets while computing yield as a function of time. Money markets are made up of smart contracts that follow the ERC-20 token specification.

Furthermore, the Compound protocol can be used by dApps, machines, and exchanges with token balances to generate monetization and total returns by "sweeping" balances.

The Compound protocol issues cTokens. The cTokens earn income based on the exchange rate with the underlying asset. The cToken represents Tether USD (USDT) as cUSDT. The number of cUSDT held by a user remains constant over time, but the amount of USDT held when a user exchanges it back into the underlying asset can increase. The Compound USDT can be utilized as collateral to borrow from the protocol.

This platform can also introduce new business models for the Ethereum ecosystem. Compound started with the centralized control of the protocol and is planning to control the community and stakeholders over time. The admin has control over the following protocol rights:

• Ability to create a new cToken market

• Ability to modify the yield rate model per market

• Ability to change the oracle address

• Ability to withdraw the reserve of a cToken

• Ability to select a new admin

History of Compound USDT (CUSDT)

Geoffrey Hayes (CTO) and Robert Leshner created Compound Labs in August 2017. Robert Leshner and Geoffrey Hayes created the whitepaper of the Compound protocol, which was published in February 2019.