What is USDT0?
USDT0 is an omnichain version of USDT, utilizing LayerZero’s Omnichain Fungible Token (OFT) standard. USDT0 is pegged one-to-one with traditional USDT, enabling frictionless transfers across multiple blockchains without the need for bridges or wrapped tokens. Unlike traditional stablecoins, which maintain isolated liquidity pools on different chains, USDT0 consolidates liquidity into a single, interoperable asset, significantly enhancing the ease and speed of cross-chain transactions. When transferring USDT0 between blockchains - such as from Ethereum to Optimism or Arbitrum - the token is either locked (on chains with native USDT support) or burned on the source chain, then minted on the destination chain via LayerZero’s cross-chain messaging protocol. This process maintains a seamless 1:1 peg to standard USDT. Users enjoy faster transfers, no additional bridging fees, and minimal slippage - making it superior to traditional bridging solutions.