This discussion is about determining whether the value of enabling USDT on Zeitgeist outweigh the risks.
There are numerous ways how USDT could be utilized:
- Using USDT in prediction markets
- Using USDT to pay transaction fees (which can be automatically converted to ZTG regularly)
- Using USDT as a reserve/lock for certain interactions (such as interacting with governance, creating markets, starting a dispute, etc.)
The usage of USDT might be attractive since it is a stablecoin and it's value does not much deviate from USD, which many people are used to hold. USDT has a relatively huge market capitalization. Since a lot of USDT is already in circulation, this liquidity could potentially attracted. In addition, many operations in the protocol require holding ZTG in form of bonds or to pay transaction fees. ZTG is still subject to significant price fluctuations which might disencourage locking ZTG for extended period of times for many actors in the system.
On the other hand, the more USDT is integrated into the protocol, the more a dramatic event within the USDT ecosystem affects Zeitgeist.
I invite the community to share their opinions and to take part in this decision. Also consider participating in an off-chain token holder vote at https://voting.opensquare.io/space/zeitgeist/proposal/QmNvE2u9sKNZKuuktiWHAZzj9vnHQwm9bVrBU8uyBgFoQk
As mentioned on the governance channel on Discord.
Users predicting the outcomes of the markets using a stable currency without having to worry about fluctuations in the market price of ZTG is a good idea. It's something users have been asking for since the beginning of the parachain.
USDt for 1, the use on prediction markets is kinda obvious and the most wanted feature for many.
For point #2, it makes sense as long as it's used only as exchange and the real fees are kept in ZTG, at the parachain level. In such a way in the event of a stablecoin depeg, the ZTG would still maintain the fee structure within the parachain.
About point #3, it's not too convincing. Governance, disputes and market creation are a core function of ZTG and that should be respected. Moreover, it not only exposes governance to the stablecoin depeg risk of the coin but also exposes the governance to opportunistic deep pockets who would not even need to use the ZTG to attack the parachain governance.