Tether Launches Alloy Platform Backed By Tether Gold And Introduces First Token aUSD₮
In Brief
Tether unveiled Alloy, a platform facilitating the creation of various “tethered assets” backed by Tether Gold.
Issuer of the USD-pegged stablecoin USDT, Tether unveiled Alloy, a platform facilitating the creation of various “tethered assets” backed by Tether Gold (XAU₮).
These assets are crafted to maintain price parity with reference assets leveraging stabilization mechanisms such as over-collateralization with liquid assets and secondary market liquidity pools. Such strategy ensures stability and value alignment inbetween the initial asset and its tethered replication.
The first asset presented by the platform is aUSD₮, which stands as an over-collateralized on-chain with XAU₮, merging the utility of the United States dollar with the intrinsic value of gold. The stability of aUSD₮’s price is upheld through supply and demand dynamics in secondary markets, including liquidity pools.
Alloy provides long-term holders with an option to retain exposure to gold while simultaneously acquiring a dollar-denominated asset for everyday economic activities. Furthermore, the platform’s openness enables the creation of various assets supported by diverse mechanisms, encompassing yield-bearing offerings.
Alloy smart contracts are operational on the Ethereum mainnet. Individuals have the capability to mint aUSD₮ by depositing XAU₮ via a procedure run by Ethereum-compatible smart contracts. The aUSD₮ smart contract maintains transparency by monitoring collateral and minted tokens, leveraging Price Oracles to continuously assess the Mint to Value (MTV) ratio.
Tether Expands Its Financial Solutions With New Partnership For Encrypted Payment Platform
Tether represents the firm owned by iFinex, which is registered in Hong Kong and also owns the cryptocurrency exchange BitFinex. The platform supports various currencies, encompassing the United States dollar, Euros, Mexican peso, offshore Chinese yuan, and Gold through Tether Tokens such as USD₮, EUR₮, MXN₮, CNH₮, and XAU₮, with each of them being pegged at a one to one ratio with its corresponding fiat currency and completely backed by Tether’s reserves.
Recently, Tether has partnered with the TON Foundation and Oobit to develop a new encrypted payment solution aimed at providing banking solutions to unbanked communities.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
