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AltcoinsTether Reveals the Release of Alloy by Tether

Tether Reveals the Release of Alloy by Tether

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Tether has introduced a groundbreaking digital asset called Alloy by Tether, which is backed by Tether Gold. Developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., this innovative product aims to combine the stability of a fixed unit of account with the security and reliability of gold.
Alloy by Tether: The New Digital Asset Supported by Tether Gold
Follow:
@Alloy_Tether
$aUSDT
Read More:
https://t.co/HWT0Slr85j
— Tether (@Tether_to)
June 17, 2024
Alloy by Tether falls under a new category of digital assets known as tethered assets. These assets are designed to mirror the value of reference assets through sophisticated stabilization mechanisms, such as over-collateralization with liquid assets and secondary market liquidity pools. This ensures a consistent value and stability relationship between the reference asset and its digital equivalent.
Introduction of aUSD₮
The first token in the Alloy by Tether series is aUSD₮, a digital currency pegged to the US dollar’s value. What makes aUSD₮ unique is its over-collateralization by Tether Gold (XAU₮), meaning it is backed by physical gold stored in Switzerland. Users can create aUSD₮ tokens by using Tether Gold (XAU₮) as collateral. This presents a significant advantage for those interested in digital transactions and remittances without needing to sell off their XAU₮ holdings.
Alloy by Tether leverages smart contracts deployed on the Ethereum Mainnet. Users can generate aUSD₮ by depositing Tether Gold (XAU₮) as collateral through a transparent process managed by Ethereum-compatible smart contracts. These contracts ensure transparency by monitoring all collateral and minted tokens, and utilizing Price Oracles to continuously evaluate the Mint to Value (MTV) ratio.
Tags:
Tether
USDT

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