Since launching this January, USDT0 has paved a new path for omnichain stablecoin liquidity, bringing unified, native USDT to top blockchains like Arbitrum, Optimism, Ink, and Berachain.
Recently, Chaos Labs conducted an independent, full-spectrum risk review of USDT0. Their report is now live, and the results are in: USDT0’s design is economically secure, operationally sound, and built with some of the strongest onchain safeguards available today.
Read the full risk report here, or continue below for some key takeaways.
USDT0’s design enables seamless liquidity access with uncompromising capital protection. Every live USDT0 deployment is fully viewable on-chain, and USDT0’s modular protocol is embedded security across every layer of the stack.
This includes:
Immutable messaging via LayerZero’s OApp and Endpoint libraries
Message integrity enforced through DVNs and payload hash verification
Real-time simulations through Chaos Labs’ Pre-Crime oracle to block risk-inducing transactions
Proof of Reserves oracle will be implemented by Chaos Labs at a later date, and will continuously validate USDT0’s 1:1 backing
Zero-slippage omnichain transfers across all connected chains
In terms of assessing protocol risk, Chaos Labs’ analysis covered three major areas:
USDT0’s core invariant is that its circulating supply can never exceed the amount of locked USDT on Ethereum. This is enforced via:
A LayerZero-powered OFT design with immutable cross-chain message validation
Dual DVN (Decentralized Verifier Network) security requiring both LayerZero and USDT0-specific verifiers to approve every mint or redemption
A Pre-Crime Oracle will be integrated at a later date and will simulate the end state of every transaction before execution, blocking any operation that could break the peg
USDT0 minimizes depeg risk and improves market efficiency via:
A unified liquidity layer, where capital moves natively between supported chains—burning on the source chain and minting on the destination
Seamless composability with DEXs, lending protocols, and stable pools without fragmentation
A legacy mesh system that connects USDT liquidity across chains like Ethereum, Tron, and TON via Arbitrum
USDT0 has no centralized issuer or custody layer. All reserves are managed by a non-custodial smart contract on Ethereum, operated by a 3-of-5 multisig governed by Everdawn Labs. The mint/burn logic is fully transparent, upgradable, and designed to be modular in order to accommodate new security frameworks, standards like ERC-7802, and evolving regulatory requirements.
USDT0 is designed to minimize off-chain dependencies by relying on fully transparent, onchain infrastructure. However, like any interoperable system, it depends on two core components to function reliably: USDT on Ethereum and the LayerZero messaging stack.
USDT on Ethereum is held in a non-custodial smart contract (OAdapterUpgradeable), and USDT0 always maps directly to native USDT on Ethereum, unlike wrapped or bridged stablecoins.
LayerZero’s Messaging Infrastructure enables native cross-chain token transfers through message passing rather than bridge-based liquidity, with every message (mint, burn, or transfer) verified by two independent DVNs to protect against message spoofing or unauthorized issuance.
Together, these systems ensure that USDT0’s cross-chain operations are verifiable, decentralized, and resistant to manipulation.
Beyond the above risk analysis, Chaos Labs also dove into the technicalities of USDT0's core mechanics, operations, and primary use cases. Based on their findings, it’s clear that USDT0 is setting a new security bar for omnichain liquidity.
But don’t take our word for it. USDT0 maintains a live bug bounty program on Immunefi with up to $6,000,000 in rewards for critical findings. We welcome security researchers, whitehats, and contract auditors to look under the hood and receive generous rewards for flagging actionable improvements.
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USDT0 BlogCelebrating One Year of USDT0
Your USDT, anywhere. Official blog of USDT0 — the unified liquidity protocol bringing Tether's assets to any chain.
Since launching this January, USDT0 has paved a new path for omnichain stablecoin liquidity, bringing unified, native USDT to top blockchains like Arbitrum, Optimism, Ink, and Berachain.
Recently, Chaos Labs conducted an independent, full-spectrum risk review of USDT0. Their report is now live, and the results are in: USDT0’s design is economically secure, operationally sound, and built with some of the strongest onchain safeguards available today.
Read the full risk report here, or continue below for some key takeaways.
USDT0’s design enables seamless liquidity access with uncompromising capital protection. Every live USDT0 deployment is fully viewable on-chain, and USDT0’s modular protocol is embedded security across every layer of the stack.
This includes:
Immutable messaging via LayerZero’s OApp and Endpoint libraries
Message integrity enforced through DVNs and payload hash verification
Real-time simulations through Chaos Labs’ Pre-Crime oracle to block risk-inducing transactions
Proof of Reserves oracle will be implemented by Chaos Labs at a later date, and will continuously validate USDT0’s 1:1 backing
Zero-slippage omnichain transfers across all connected chains
In terms of assessing protocol risk, Chaos Labs’ analysis covered three major areas:
USDT0’s core invariant is that its circulating supply can never exceed the amount of locked USDT on Ethereum. This is enforced via:
A LayerZero-powered OFT design with immutable cross-chain message validation
Dual DVN (Decentralized Verifier Network) security requiring both LayerZero and USDT0-specific verifiers to approve every mint or redemption
A Pre-Crime Oracle will be integrated at a later date and will simulate the end state of every transaction before execution, blocking any operation that could break the peg
USDT0 minimizes depeg risk and improves market efficiency via:
A unified liquidity layer, where capital moves natively between supported chains—burning on the source chain and minting on the destination
Seamless composability with DEXs, lending protocols, and stable pools without fragmentation
A legacy mesh system that connects USDT liquidity across chains like Ethereum, Tron, and TON via Arbitrum
USDT0 has no centralized issuer or custody layer. All reserves are managed by a non-custodial smart contract on Ethereum, operated by a 3-of-5 multisig governed by Everdawn Labs. The mint/burn logic is fully transparent, upgradable, and designed to be modular in order to accommodate new security frameworks, standards like ERC-7802, and evolving regulatory requirements.
USDT0 is designed to minimize off-chain dependencies by relying on fully transparent, onchain infrastructure. However, like any interoperable system, it depends on two core components to function reliably: USDT on Ethereum and the LayerZero messaging stack.
USDT on Ethereum is held in a non-custodial smart contract (OAdapterUpgradeable), and USDT0 always maps directly to native USDT on Ethereum, unlike wrapped or bridged stablecoins.
LayerZero’s Messaging Infrastructure enables native cross-chain token transfers through message passing rather than bridge-based liquidity, with every message (mint, burn, or transfer) verified by two independent DVNs to protect against message spoofing or unauthorized issuance.
Together, these systems ensure that USDT0’s cross-chain operations are verifiable, decentralized, and resistant to manipulation.
Beyond the above risk analysis, Chaos Labs also dove into the technicalities of USDT0's core mechanics, operations, and primary use cases. Based on their findings, it’s clear that USDT0 is setting a new security bar for omnichain liquidity.
But don’t take our word for it. USDT0 maintains a live bug bounty program on Immunefi with up to $6,000,000 in rewards for critical findings. We welcome security researchers, whitehats, and contract auditors to look under the hood and receive generous rewards for flagging actionable improvements.
USDT0 BlogUSDT0: Your USDT, Anywhere
Today, we are thrilled to announce the launch of USDT0. USDT has completely reshaped global economies and in just over a decade has become the single largest stable asset in the world at almost $140B. It fulfilled crypto’s original promise of banking the unbanked and providing critical financial infrastructure for billions worldwide. With the introduction of USDT0, this mission now expands further. It extends USDT across new blockchains, enables a seamless experience for users and developers,...
USDT0 BlogXAUt vs XAUt0: What’s the Difference? (And Why It Matters)
Since launching in 2020, Tether Gold (XAUt) has become the world’s leading tokenized gold asset, trusted by traders, savers, and DeFi enthusiasts alike. As a fully backed token, XAUt lets anyone hold a digital claim on LBMA–accredited bullion, locked in Swiss vaults and physically redeemable. But like many onchain assets, XAUt’s liquidity lives in isolated pools and access is limited across chains. This fragmentation adds costs and risk to an asset otherwise known for stability and security a...
USDT0 BlogCelebrating One Year of USDT0
Your USDT, anywhere. Official blog of USDT0 — the unified liquidity protocol bringing Tether's assets to any chain.
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