> For the complete documentation index, see [llms.txt](https://docs.yei.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yei.finance/guides/asset-guides/asset-guide-usdt/usdt-migration-guide.md). # USDT Migration Guide ## Overview On Sei Mainnet, there are currently **two types of USDT**: * **KavaUSDT**: Bridged via IBC from the Kava blockchain. * **USDT0**: 1:1 backed by Ethereum-native USDT, bridged via LayerZero’s OFT standard. Both are usable today, but **USDT0 is becoming the new standard** across the Sei DeFi ecosystem. *** ## Understanding the difference | Feature | USDT0 | KavaUSDT | | -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------- | | Origin | Ethereum-native USDT | Bridge from Kava | | Bridging Method | LayerZero OFT (Omnichain Fungible Token) | IBC | | Backing | 1:1 backed by locked USDT on Ethereum | Backed by KavaUSDT in a Kava smart contract | | Cross-Chain Support | Seamless via LayerZero | Limited to IBC-compatible chains | | Ecosystem Preference | Preferred | Deprecated | | Redeemability | [Backed by USDT on Ethereum.](https://docs.usdt0.to/overview/how-usdt0-works) [Supported by native USDT on Tron, TON, Arbitrum, etc. ](https://docs.usdt0.to/overview/how-usdt0-works/the-legacy-mesh) | [Supported by native USDT on Kava.](https://help.app.kava.io/article/45-native-usdt-on-cosmos) | *** ## Why migrate to USDT0? Protocols on Sei (including Yei Finance) are adopting **USDT0** as the primary stablecoin because of its: * Direct backing by Ethereum USDT. * Native compatibility with omnichain transfers (via LayerZero). * Stronger oracle and tooling support. * Simpler and safer app integrations. * Future-proof ecosystem compatibility. **USDT0** will be the default stablecoin on Sei, offering better native liquidity and security. As Sei transitions to EVM-only, **KavaUSDT will no longer be supported.** *** ## How to migrate? You can migrate to USDT0 using the following three methods: #### Method 1: * **Swap on YeiSwap.** * Visit [YeiSwap](https://swap.yei.finance/) to convert KavaUSDT into USDT0.
#### **Method 2:** * **Use YeiBridge to migrate.** * Visit [YeiBridge](https://app.yei.finance/bridge/) to send your KavaUSDT to another chain (such as Avalanche, Arbitrum) as USDT.
* Bridge the USDT back to Sei as USDT0.

Make sure you have enough assets (such as AVAX or ETH) on the destination chain to cover transaction fees.

**Method 3:** {% hint style="success" %} This method is better for large amounts and offers zero slippage from Sei to Kava EVM (as of July 24, 2025). \ It leverages Kava but requires additional setup, such as configuring a Keplr wallet. {% endhint %} * **Use Kava Bridge to bridge out.** * Visit [Kava Bridge](https://app.kava.io/transfer), and bridge KavaUSDT from Sei to Kava EVM.
* Wait for the bridge process to complete.
* Check your destination wallet to ensure the USDT has arrived.
* Transfer USDT to a CEX (e.g., Binance, Bybit, etc.). *** ## Frequently Asked Questions ### **Q: Do I have to migrate?** A: Migration is strongly recommended. As Sei transitions to an EVM-only architecture, KavaUSDT will have fewer use cases and reduced support across the ecosystem. Additionally, Yei will cease supporting deposits and borrowing for KavaUSDT after **Jul 10, 2025**. ### **Q: Is KavaUSDT going away?** A: Once Sei completes the SIP-3 transition, Cosmos-native assets will no longer be supported. For more details, see: [https://blog.sei.io/sip-3-update-sei-moves-toward-evm-only-architecture](https://blog.sei.io/sip-3-update-sei-moves-toward-evm-only-architecture/?utm_source=chatgpt.com). *** ## Summary USDT0 is the official stablecoin standard on Sei. Migrating ensures access to better DeFi opportunities, cross-chain compatibility, and ecosystem-wide support. For the best experience and compatibility, use USDT0 going forward. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.yei.finance/guides/asset-guides/asset-guide-usdt/usdt-migration-guide.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.