First posted on https://www.bulbapp.io/

Good morning/evening

So while checking out my LINK and ARB on Aave I noticed something had changed, my supplied USDT was now USDTO, so what is this?

USDT0 and Arbitrum: Transforming Stablecoin Liquidity with Legacy Mesh

Well it basically gives you the ability to use tour USDT across different chains and Arbitrum One blockchain was chosen  as the core infrastructure for this interoperable Tether stablecoin This integration is set to revolutionize stablecoin liquidity through the Legacy Mesh, a solution designed to connect USDT deployments across Arbitrum, Ethereum, Tron, and Ton into a unified USDT0 network.

Legacy Mesh enables movement of USDT between blockchains at lower costs while enhancing access to liquidity pools without the need to use a bridge. USDT0   provides a direct, 1:1 backed connection with USDT. This is powered by LayerZero’s interoperability protocol, ensuring secure and cost-effective transfers.

According to Steven Goldfeder, co-founder and CEO of Arbitrum developer Offchain Labs, Legacy Mesh marks a significant milestone: “Ensuring that users and developers have access to deep, liquid markets regardless of the blockchain they are on.”

The integration also allows frictionless USDT transfers to Telegram wallets, as confirmed by Tether CEO Paolo Ardoino on X. By linking four major blockchains, USDT0 effectively unifies $138 billion worth of Tether, representing a staggering 98% of all Tether liquidity.

Not just an upgrade

USDT and legacy mesh hopes to be a game changer for liquidity as traders and investors will have access to deep pools of liquidity and possibly even reduce slippage. The hope is that this will make USDT more attractive to people than USDC.

Why Arbitrum

By leveraging Arbitrum’s Layer 2 technology, the Legacy Mesh ensures faster and more affordable transactions without compromising security or liquidity. With this partnership, Arbitrum solidifies its position as a central hub for USDT liquidity and redefine cross chain transactions across different blockchains which is a great idea. With Arbitrum as the hub for USDTO you will also be able to use new chains such as Ink (never heard of this one!) Berachain  MegaETH and upcoming USDTO chains.

From https://www.coingecko.com/learn/what-is-megaeth

MegaETH is an upcoming high performance Ethereum Layer 2 (L2). MegaETH’s key features include: Transaction Processing Speeds (TPS) of over 100,000 and 10 millisecond block times (lower is better). MegaETH has recently gained significant public attention due to launching an exclusive soulbound (not tradeable) NFT collection.

What chains can you use USDTO on

The Legacy Mesh is designed to connect USDT between four of the largest USDT blockchains. Diagram from https://x.com/USDT0

• Ethereum

• Ton

• Arbitrum

• Tron

For chains like Ethereum, Tron, and TON , the mesh uses liquidity pools to facilitate transfers. 

With these four chains now linked, approximately more than 90% of all USDT exists within a single seamless system, with USDT0 serving as the base for expanding this mesh to even more networks.

Paolo Ardoino, CEO of Tether, said: “The Legacy Mesh is bringing 138B USDT together, making it a crucial advancement toward a unified onchain dollar system. It simplifies the movement of liquidity from already established chains like Tron and Ethereum into new and exciting ecosystems like TON and the USDT0 networks in a fully permissionless and self-sufficient way.”

Although I think this is a great start, it really needs to be available on a lot more chains, if not all chains, I try to avoid Ethereum chain and have barely used Tron or TON so will not be of a great use to me yet, but with more chains on board in the future I think this is how all chains should work, no bridging needed. (yes I still twiddle my thumbs when bridging as I get nervous lol). 

So what are your thoughts? Do you think this is a great idea? Do you use those chains?

As always thank you for reading and feel free to comment.