> 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.

<figure><img src="/files/QyCRICfiQukXiGZkkGJP" alt="" width="563"><figcaption></figcaption></figure>

#### **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.

  <figure><img src="/files/3cIfZX5buj8sSzIpEPcB" alt="" width="509"><figcaption></figcaption></figure>

  * Bridge the USDT back to Sei as USDT0.

  <figure><img src="/files/ochCYKyqeBe7HE2PG8kw" alt="" width="521"><figcaption></figcaption></figure>

  <div data-gb-custom-block data-tag="hint" data-style="warning" class="hint hint-warning"><p>Make sure you have enough assets (such as AVAX or ETH) on the destination chain to cover transaction fees.</p></div>

**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.

  <figure><img src="/files/odpBj9vKdyyt4mQWeHTr" alt="" width="493"><figcaption></figcaption></figure>

  * Wait for the bridge process to complete.

  <figure><img src="/files/LvDiiKzI05SgrRw1bfLn" alt="" width="443"><figcaption></figcaption></figure>

  * Check your destination wallet to ensure the USDT has arrived.

  <figure><img src="/files/hLT0FnqMmSsdoARD2kiJ" alt="" width="330"><figcaption></figcaption></figure>

  * 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.