Reeve Collins, a co-founder of Tether, is set to challenge the stablecoin giant with his upcoming project, Pi Protocol.
What Is Pi Protocol?
Pi Protocol is a decentralized stablecoin project launching on Ethereum and Solana. It allows users to mint USP by submitting collateral through smart contracts. Additionally, a yield-bearing token, USI, is issued in exchange.
How Will Pi Protocol Work?
The protocol utilizes tokenized real-world assets like U.S. Treasuries to generate yield. Governance is done through USPi, which allows holders to partake in platform revenue and influence governance.
Can Pi Protocol Challenge Tether’s Dominance?
Despite its potential advantages, Pi Protocol faces an uphill battle against Tether, which is deeply embedded in the market with strong liquidity and network effects.
Pi Protocol seeks to fill a niche under tightening stablecoin regulations by offering a transparent and regulated alternative, though competing with established players will be a challenge.
