1/3 Explanation: Tether is issued on multiple chains (Omni, ETH, ..)
When @bitfinex receives too many deposits for Tether-Omni and then users want to withdraw Tether-ETH, @bitfinex sends back to @Tether_to the Omni ones and gets back the same amount in ETH.https://twitter.com/whale_alert/status/1143526987904028673 …
-
Show this thread
-
2/3 It's based on market demand. Imagine that there is an exchange that has support only for Tether-ETH and has a lower BTC price than others. Lot of customers will need Tether-ETH instead of Tether-Omni.
@bitfinex acts as a gateway between the two (several) transport layers.3 replies 1 retweet 21 likesShow this thread -
3/3 This concept is really normal for assets that live on multiple chains. The total issuance needs to stay the same, so if you need X Tether-ETH, you have to send back X Tether-Omni. Happy to clarify further
4 replies 3 retweets 27 likesShow this thread -
Replying to @paoloardoino
Why not using only one chain? What is the benefit to still use Omni? ETH is widely accepted in every Exchange.
1 reply 0 retweets 1 like
Every chain has its own users / use cases - Omni: is secured by Bitcoin, incoming support for atomic swaps - Liquid: (soon) Bitcoin sidechain, 1m block time, secured by Bitcoin - ETH/EOS: faster, can be used directly in smart contracts as stable-coin - LN/RGB: will be awesome
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.