USD1 vs USDT vs USDC: What’s the Difference

Trading
USD1 vs USDT vs USDC: What’s the Difference

Stablecoins are the settlement layer of crypto trading, powering perpetual contracts, arbitrage, and on/off-ramps. But not all stablecoins are created equal. Here’s how USD1, USDT, and USDC compare.

USD1 (WLFI)

Issuer & Reserves

Issued by World Liberty Financial (WLFI),USD1 is redeemable dollar stablecoin supported by U.S. dollars and Government Money Market Funds, with transparent monthly attestations. Built for institutions, developers, and individuals, it is available across multiple blockchains for easy integration and global access

Strengths:

  • Fully collateralized: Regulated stablecoin with institutional-grade custody.

  • Loyalty Incentives: Earn points and USDT yield by trading, converting, and holding USD1 for future benefits in the USD1 Loyalty Program.

  • Capital-efficient: Idle balances remain productive, unlike typical stablecoins.

Limitations:

  • Newer asset: Less liquidity compared to other established stablecoins.

  • Transparency: Public reserve reporting is less detailed than Circle's USDC disclosures.

Flipster Exclusive: More than usual 1x USD1 points

On Flipster, USD1 is more than just a settlement asset:

  • Zero-spread perpetuals on BTC/USD1, ETH/USD1 and more — eliminating bid/ask drag.

  • Low trading fees starting from ~0.025% on perps.

  • USD1 Loyalty Program, administered by WLFI and displayed by Flipster:

    • Trade USD1 pairs with ≥ 500 USD1 daily cumulative volume.

    • Convert USDT → USD1 with ≥ 500 USD1 daily volume.

    • Hold ≥ 1,000 USD1 balances to earn loyalty points + USDT yield.

Best For: Traders who want to maximize their future benefits from their stablecoin usage via the USD1 Loyalty Program.

USDT (Tether)

Issuer & Reserves

USDT remains the world’s largest stablecoin by market cap. It is issued by Tether Ltd and backed by reserves that include cash, equivalents, and other short-term instruments.

Strengths:

  • Dominant liquidity: USDT is the de facto stablecoin across almost all exchanges, making it indispensable for cross-exchange arbitrage and global trading volume.

  • Deep order books: Large positions can be opened and closed with minimal slippage due to massive liquidity pools.

Limitations:

  • Regulatory scrutiny: USDT remains under frequent discussion by regulators.

  • Transparency gap: Attestation reports are published.

  • Transparency concerns despite improvements in reserve reporting, with reserve breakdown being less granular than USDC’s.

Best For: Traders needing liquidity and pair coverage for arbitrage or cross-exchange strategies.

USDC (Circle)

Issuer & Reserves

USDC is issued by Circle, backed primarily by cash and short-term U.S. Treasuries. It has become known as the “compliance-friendly” stablecoin, favored in regulated and institutional contexts.

Strengths:

  • Transparency: Circle publishes monthly attestations, with reserves seen as safer and more predictable.

  • Regulated adoption: USDC is widely integrated into DeFi protocols, fintech rails, and institutional treasuries.

  • Trust factor: Often chosen by compliance-focused asset managers and institutions.

Limitations:

  • Liquidity: While strong, USDC does not match USDT’s global dominance in exchange volume. Liquidity depth can lag USDT on long-tail pairs.

Best For: Institutional and compliance-focused counterparties prioritizing regulatory alignment and audited transparency.

Disclaimer: The specific points calculation method is determined by WLFI. Flipster only displays points generated from this activity. WLFI reserves the final interpretation rights for the loyalty points program.