Binance automatically converts BUSD, what is the purpose?

特邀专栏作者

2022-09-06 15:20 (UTC+8)

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This is not the "delisting" of USDC, but USDT has taken another big step in the direction of losing to the stablecoin in the United States.

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This is not the "delisting" of USDC, but USDT has taken another big step in the direction of losing to the stablecoin in the United States.

Original compilation: 0x9F, BlockBeats

Yesterday, Binance officiallyAnnounceAccording to the statement, in order to improve the user's liquidity and capital utilization efficiency, Binance will automatically convert the user's existing USDC, USDP, TUSD Stablecoin balance and new recharge to BUSD at a ratio of 1:1.Wintermute CEO Evgeny Gaevoy believes that most of the news did not correctly reveal the impact of this incident on USDC, and made the following 4 points of clarification, which are translated by BlockBeats as follows:

Removing most Stablecoin trading pairs is a good thing, it frees liquidity from having to be split across multiple Stablecoins, makes life easier for market makers, and makes the market generally more liquid.

This is good for USDC (and TUSD and others), users should still be able to seamlessly deposit USDC into and out of Binance. Before this change, users needed to convert USDC to BUSD or USDT to pay the margin of the perpetual contract.

Users can now skip the redemption step (pay the security deposit directly in BUSD). This provides a better user experience while maintaining the usefulness of USDC (even more so in my opinion).

Apparently there is one stablecoin out of scope and that is USDT. This is not good for USDT, customers will always wonder what makes USDT so "special" that they need to go to the trouble of exchanging. In the long run, the liquidity of non-USDT trading pairs will increase.

Ultimately, USDT will keep losing ground until it has to improve operational efficiency (minting and burning is a T+1 process, not nearly instant like USDC/BUSD/TUSD), and the cost of minting and redemption.

The former is likely not controlled by Tether, Silvergate and Signature are unlikely to serve Tether (because US regulators hate it), and these two banks are where the most 24/7 USD fiat flows.

in conclusion:

in conclusion:This is not the "delisting" of USDC, but USDT has taken another big step in the direction of losing to the stablecoin in the United States.

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