what's Compound USDT?

Compound USDT (cUSDT) is an interest-bearing token on the Ethereum blockchain, part of the Compound Finance decentralized lending protocol. Users deposit USDT stablecoins into Compound's money markets to supply liquidity, receiving cUSDT in return at the current exchange rate. The token represents a claim on the underlying USDT plus accrued interest from borrowers, with the exchange rate increasing over time as interest compounds automatically without requiring users to claim or reinvest rewards. This mechanism enables passive yield earning for suppliers while borrowers access USDT loans using cUSDT or other collateral. cUSDT can be traded on DEXes, used in other DeFi protocols for composability, or redeemed for USDT plus interest at any time. As a cToken, it follows Compound's algorithmic interest rate model based on utilization, ensuring stability and efficiency in decentralized finance.

First confidential stablecoin transfer on Ethereum mainnet completed via Zama Protocol.