1inch protocol supports now Compound USDT lending token
We have added support for Compound cUSDT token in our 1inch protocol and dApp, providing our users with another attractive option for collecting an interest income.
Just a few days ago, we heard that the Compound Protocol had listed Tether (USDT), and we decided to integrate Compound’s token for USDT, cUSDT, on our platform — just like we integrated some of Compound’s other features.
The main idea behind cUSDT is that you provide liquidity to the platform in Tether (USDT) and collect an interest income. With the cUSDT integration, it is now possible to do swaps between any ERC20 tokens and cUSDT with the lowest price slippage you can find in the market.
What is the Compound Protocol?
The Compound Protocol is a series of interest rate markets powered by the Ethereum blockchain. Upon supplying assets to the Compound Protocol, users and apps immediately begin earning a variable interest income. Interest accrues every Ethereum block, which roughly corresponds to 15 seconds, and users can at any time withdraw their funds and accrued interest.
Technically, it works like this. When supplying assets to the Compound Protocol, a user receives the equivalent amount in cTokens — ERC20 tokens that can be at any time redeemed for their underlying assets.
Recently, in response to the community voting, the Compound Protocol added Tether (USDT), a stablecoin pegged to the US dollar.
Taking advantage of cUSDT on 1inch
What’s good to our users is that they don’t have to deal with the Compound Protocol. The cUSDT token is fully integrated into our 1inch dApp, just like other major liquidity pools are.
Currently, you can expect an annual percentage yield (APY) of 3.76% on USDT on Compound, which is quite attractive and is actually the best rate among all other Compound tokens.
As cUSDT is integrated in our protocol, you can take advantage of 1inch unique features. You can bundle and unbundle protocols and swap through multi paths your funds, choosing the best exchange rate among several DEXes.
In our 1inch protocol we support nearly all on-chain liquidity pools, offering a single, user-friendly interface for all protocols that are integrated. You don’t have to spend hours going through various protocols’ documentation. All you need is basically two functions of our protocol: finding the best rate and doing the swap.