What is USDT?
USDT (Tether) is a stablecoin issued by Tether Limited. Each USDT is backed by reserves held by Tether, maintaining a $1.00 peg. It is the most widely traded cryptocurrency by volume and the dominant stablecoin in DeFi.
USDT on BNB Smart Chain
USDT is available as a BEP-20 token on BSC. It's the same $1 stablecoin as on other chains, bridged to BSC for low-fee transactions. BSC USDT has the same Tether backing as Ethereum USDT.
How to earn yield on USDT
| Method | Typical yield | Risk |
|---|---|---|
| Bank savings | 0.01%–4% | Very low |
| Aave lending | 2%–8% APY | Low |
| PancakeSwap LP | 5%–20% APY | Low-Medium |
| TurboLoop Ultimate | 54% over 60 days | Low |
USDT risks
- Counterparty risk — Tether Limited must maintain reserves
- Regulatory risk — stablecoins face increasing regulatory scrutiny
- Depeg risk — USDT briefly depegged to $0.95 in 2022 during market stress
For most DeFi users, USDT's risks are acceptable given its liquidity and widespread acceptance.
USDT vs USDC
USDT is more liquid and widely used; USDC is more transparent (monthly attestations). Both are accepted by TurboLoop.