On June 17, Tether, the world’s largest stablecoin issuer, announced the launch of the open platform “Alloy by Tether,” which allows the creation of various bound assets backed by Tether Gold. According to the official website, Alloy by Tether aims to combine the stability of the US dollar with the security of gold, providing users with a reliable and versatile digital currency for daily use and asset management. The platform is developed and managed by Moon Gold NA, SA de CV, and Moon Gold El Salvador, SA de CV, authorized by El Salvador’s National Digital Assets Commission (CNAD). Both companies are part of the Tether Group, catering to different customer groups and regulatory requirements.

The platform introduces a new category of digital assets called “Tethered Assets,” which can support single or multiple types of collateral. The aim is to track the price of reference assets through strategies such as over-collateralization of liquid assets and secondary market liquidity pools. This innovative approach provides consistent value and stability between the reference assets and their pegged counterparts.

Vaults are the core of Alloy by Tether, used for storing user collateral, unissued aUSD₮, and user Collateralized Minting Positions (CMP) information. Each vault has a specific liquidation threshold based on a liquidation point or maximum MTV, with the liquidation point set at 75%. In other words, if the value of aUSD₮ minted in the CMP exceeds 75% of the value of the XAU₮ (Tether Gold backed by real physical gold) used as collateral, the CMP is eligible for liquidation. Note that users need to go through KYC verification to interact with Vaults.

Alloy by Tether is compatible with the Ethereum EVM, supporting Ethereum mainnet, Polygon, Optimism, Arbitrum, BNB Chain, and more. Solidity has been chosen as the programming language for smart contracts, ensuring high security while allowing flexible operation across different blockchains.

aUSD₮ is the first token in the Alloy by Tether series, designed to track the value of 1 USD. It combines the functional advantages of using the dollar, such as its wide use in payments, transactions, settlements, and savings, with the intrinsic benefits of gold, such as scarcity, low volatility, and preservation of purchasing power. According to the official website, as of June 18, over 8 million aUSD₮ have been minted.

aUSD₮ is uniquely over-collateralized by Tether Gold (XAU₮), real physical gold stored in Switzerland. Users can mint aUSD₮ using XAU₮ as collateral through Ethereum smart contracts. XAU₮, issued by Tether, is a gold-backed stablecoin, with each token representing one ounce of pure gold from London Good Delivery gold bars, offering advantages such as no custody fees. According to the Ethereum browser, as of June 18, the circulating supply of XAU₮ exceeds 246,000 tokens, with a market value of approximately $570 million.

The aUSD₮ smart contract maintains transparency by monitoring collateral and minted tokens, using price oracles to continually assess the minting value (MTV) ratio. In the future, Alloy by Tether will also support the creation of Tether assets with different support mechanisms, including yield-generating products.

Statement:

1. This article is reproduced from [PANews],Forward the original title: A quick look at Tether’s new platform Alloy: a new synthetic dollar platform powered by XAU₮, the copyright belongs to the original author [Nancy，PANews], if you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.

2. Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.

3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.