Research Summary
The report discusses the introduction of USDT (Tether) deposits on the Deribit platform, providing users with more options for holding funds in stable coins. It also introduces three new USDT spot markets: BTC/USDT, ETH/USDT, and USDT/USDC. The report further explains the process of depositing USDT and the future possibility of using USDT as collateral in Deribit’s upcoming cross collateral system.
Key Takeaways
Introduction of USDT on Deribit
- USDT Deposits: Deribit now allows users to deposit USDT (Tether) into their accounts, expanding the options for users to hold funds in stable coins. This eliminates the need for users to convert their USDT to another currency before transferring funds to Deribit.
- New USDT Spot Markets: Deribit has launched three new USDT spot markets: BTC/USDT, ETH/USDT, and USDT/USDC. These markets enable users to transition from any of the three existing settlement currencies to USDT and vice versa. Notably, these markets do not charge any fees.
Depositing USDT on Deribit
- Deposit Process: To deposit USDT, users need a Deribit USDT deposit address, which is an Ethereum address as Deribit currently only supports USDT via the ERC20 (Ethereum) network. Users can generate a deposit address if they don’t already have one and use it to deposit USDT from other platforms or their own wallets.
- Network Restrictions: It’s crucial for users to send USDT only via the ERC20 (Ethereum) network. Sending funds through any other network could lead to a loss of funds.
Future Cross Collateral System
- USDT as Collateral: With the upcoming introduction of the cross collateral system on Deribit, users will be able to use USDT as collateral for positions in instruments with different settlement currencies. This means users can use their USDT as margin to trade BTC, ETH, and USDC products.
Actionable Insights
- Explore the New USDT Spot Markets: Users should explore the new USDT spot markets on Deribit to take advantage of the zero-fee trading opportunities.
- Understand the Deposit Process: Users should familiarize themselves with the process of depositing USDT on Deribit, including the need to use the ERC20 (Ethereum) network exclusively.
- Prepare for the Cross Collateral System: Users should prepare for the upcoming cross collateral system, which will allow them to use USDT as collateral for trading other products.
