Understanding USDT and USDT0 on Sei Mainnet

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Joerg Hiller
Apr 11, 2025 13:10

Explore the differences between Kava USDT and USDT0 on Sei Mainnet, including interoperability, token backing, and best practices for integration.

The Sei Mainnet offers two distinct versions of the USDT stablecoin, namely Kava USDT and USDT0, each carrying unique characteristics and functionalities. As the blockchain ecosystem continues to evolve, understanding these versions is key for developers and users aiming to leverage stablecoins effectively on the Sei network.

What is Kava USDT?

Kava USDT on the Sei Mainnet is a bridged form of USDT, transferred via the Inter-Blockchain Communication (IBC) protocol from Kava. This version is labeled as ‘IBC Bridged USDT’ and is identified by the token symbol ‘Kava USDT’. For developers, ensuring the correct token address on Sei is crucial, with the original being ‘ibc/6C00E4AA0CC7618370F81F7378638AE6C48EFF8C9203CE1C2357012B440EBDB7’ and the pointer ‘0xB75D0B03c06A926e488e2659DF1A861F860bD3d1’.

What is USDT0?

USDT0 represents a more integrated approach within the Sei ecosystem, being backed 1:1 by USDT locked on Ethereum. It utilizes the LayerZero protocol to ensure seamless interoperability across blockchain networks. USDT0 is recognized as the official standard for USDT on Sei and is particularly noted for its capability to facilitate cross-chain transfers efficiently. The token address for USDT0 is ‘0x9151434b16b9763660705744891fa906f660ecc5’, with the pointer ‘sei1fmsu3v448uny8hle52c3n8ygk3cgqz5a4j5283kx0q3ar3vs03mqa4v5ca’.

Recommended Best Practices

For developers aiming to support both Kava USDT and USDT0, it is recommended to make USDT0 the default option for various operations such as deposits, withdrawals, and swaps. Additionally, updating the Top Tokens page on applications to reflect this preference will enhance user experience.

Comparing USDT0 and Kava USDT

USDT0Kava USDTUses the OFT model for cross-chain interoperabilityBridged via IBC from KavaBacked 1:1 by locked USDT on EthereumBacked by USDT on Kava locked in a smart contractOfficial standard for USDT on SeiNot interoperable with the OFT modelSeamless cross-chain transfers via LayerZero

Benefits of USDT0

USDT0 offers several advantages over Kava USDT, including the ability to redeem it 1:1 for USDT on Ethereum, support for seamless cross-chain transfers via LayerZero, and the elimination of reliance on fragmented liquidity pools and bridges.

Swapping and Accessing USDT0

Developers looking to facilitate swaps from Kava USDT can use IBC-enabled bridge apps or create swapping mechanisms within their platforms on Sei Mainnet. USDT0 can be accessed through platforms like Symphony on Sei Mainnet or by using LayerZero-enabled bridge apps for secure cross-chain transfers.

For more detailed information, visit the [Sei blog](https://blog.sei.io/usdt-migration-guide/).

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