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Title: How to exchange 100 usd for 100 USDT directly by Tether reserves? Post by: mirek92 on May 23, 2022, 03:31:24 PM Hello, I read articles like this (https://www.forbes.com/advisor/investing/cryptocurrency/what-is-tether-usdt/) 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. Title: Re: How to exchange 100 usd for 100 USDT directly by Tether reserves? Post by: vv181 on May 23, 2022, 03:57:50 PM 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 Title: Re: How to exchange 100 usd for 100 USDT directly by Tether reserves? Post by: Sterbens on May 23, 2022, 04:39:23 PM 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.
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