Opium (Courtesy: Twitter)
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Opium Protocol To Bet Against Stablecoin Tether’s Solvency

Opium (Courtesy: Twitter)
Opium (Courtesy: Twitter)

Cryptocurrency traders can now protect their tether tokens or bet against the solvency of the stablecoin by leveraging a new crypto derivatives product from the Opium Protocol. Opium founder, Andrey Belyakov, claims the product is the “first CDS (credit default swap) on a centralized stablecoin.”

The stablecoin tether (USDT) is the most popular dollar-pegged token out there today, as it captures a large market cap and significant trade volume. Tether’s market valuation is around $14.1 billion and the token has around $13.6 billion in global trade volume on Sunday afternoon.

In addition to the stablecoin’s popularity, being number one comes with significant criticism. Over the last few years, a number of people have speculated on whether or not tether (USDT) is backed by real dollars. Especially given the fact that roughly $10 billion worth of the market cap grew in 2020.

In the spring of 2019, court documents revealed that every tether was supported by “cash and cash equivalents.” The founder of the Opium Protocol, Andrey Belyakov, says his team has designed a credit default swap (CDS) on USDT.

The new CDS will allow users to protect their investment in USDT or even bet against the controversial stablecoin. “Opium Protocol is proud to announce the very first CDS (Credit Default Swap) on a centralized stablecoin — USDT,” Belyakov detailed in a blog post.

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