Tether Co-Founder Builds Pi Protocol, A Competing Stablecoin
Tether’s co-founder Reeve Collins is creating a new one Stablecoin The project is called the PI protocol. He hopes to democratize stable castings and return on returns to inspire new adoptions.
Our upcoming Stablecoin regulations may make PI protocols a key opportunity for success. Its smart contracts will value fiscal bonds at a higher valuation, thus helping it build reserves to comply with Tether’s USDT failed position.
Can the PI protocol compete with Tether?
Reeve Collins sees Stablecoin market Change drastically since co-creating the tether 2013. He was the company’s first CEO, selling it to the owner of Bitfinex in 2015. Currently, he is still Positive and influential voices in the space.
Today, Collins announced that he is backing A new Stablecoin project designed to compete with Tether, dubbing PI protocol.
“We see the PI solution as an evolution of Stablecoins. Tether is very successful in showing the demand for Stablecoins. But they keep all the output. We believe 10 years later, the market is really ready to grow,” Collins said in an interview.
The PI protocol will be distinguished from the constraints in several critical ways. Essentially, it will democratize the process that creates a stable process through smart contracts. Tether currently has a monopoly in minting new USDT assets; the PI agreement will allow users to submit their own collateral and earn their own yield.
In this way, users are motivated to power the system and stay healthy.
Collins identified some reasons that making PI solutions over tethers is an ideal moment. Essentially, It all comes down to Stablecoin regulations. have More and more pressure to build a new regulatory framework For these assets in the United States, everything that is bound can be changed.
At the end of last year, Tether must exit the EU On the mica, then U.S. regulations may cause further pain.
Regulation remains a key challenge for tethering
Tether has repeatedly rejected independent reviews of its reserves over the years, and Bitcoin accounts for a large part of it. The proposed regulations will require stablecoins to have transparent reserves and hold a large portion of them in Treasury bills.
Therefore, PI protocols will want to exceed the constraints of compliance and require high attention to the excessive sideline ratios of these bonds.
In addition, the PI program will accept other forms of collateral. The company’s smart contract algorithm will carefully evaluate all collateral forms submitted, and it will specifically incentivize the use of Treasury bonds to create new tokens.
A few stable Trying to compete in the EU Using MICA and PI protocols will be attempted in the United States.
“The so-called decentralized project is expected to debut in both areas Ethereum and Solana Blockchain may be earlier in the second half of this year. No financial terms were disclosed,” Marty Folb Write On X (formerly Twitter).
Another key point in brand identification may help with the PI protocol in this competition. This project is Completely related to PI networkcurrently One of the most popular projects In encrypted space.
Overall, the PI protocol has many advantages that may help it erode the series, but USDT has solid control over the global cryptocurrency market. This month, the entire Stablecoin market cap reached record highs this month, while USDT’s advantage remains strong at 63%.
To achieve this, it will combine luck, regulatory opportunities and investor buying. For now, however, Collins seems determined to see it.
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