Tether Launches New Platform Alloy Supported By XAU₮

According to BlockBeats, Tether, the world's largest stablecoin issuer, announced the launch of an open platform 'Alloy by Tether' on June 17, which allows the creation of different tethered assets supported by Tether Gold. Alloy by Tether aims to combine the stability of the dollar with the security of gold, providing users with a reliable and multifunctional 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, both members of the Tether Group, authorized by the Salvadoran CNAD (National Digital Asset Committee) to meet 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, aiming 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 asset and its anchored counterpart. Vaults are the core of Alloy by Tether, used to store user collateral, unissued aUSD₮, and user collateral minting position (CMP) information. Vaults set specific liquidation thresholds based on the liquidation point or maximum MTV, with the liquidation point being 75%. In other words, if the value of aUSD₮ minted in the CMP exceeds 75% of the value of the XAU₮ (real physical gold-backed Tether Gold) used as collateral, the CMP is eligible for liquidation. It should be noted that user interaction with Vaults requires KYC verification. Furthermore, Alloy by Tether is compatible with Ethereum EVM, including support for Ethereum mainnet, Polygon, Optimism, Arbitrum, BNB Chain, etc. Alloy by Tether chose Solidity as the smart contract programming language, which can achieve flexible operation of different blockchains while maintaining high security. aUSD₮ is the first token in the Alloy by Tether series, aiming to track the value of 1 dollar, providing the functional advantages of using the dollar, such as its widespread use in payments, transactions, settlements, and savings, while combining the inherent advantages of gold, such as scarcity, low volatility, and preservation of purchasing power. As of June 18, the minting volume of aUSD₮ exceeded 8 million. The uniqueness of aUSD₮ lies in its over-collateralization by Tether Gold (XAU₮), which is backed by real physical gold stored in Switzerland. Users can use XAU₮ as collateral to mint aUSD₮ through Ethereum smart contracts. It is reported that XAU₮ is a gold stablecoin issued by Tether, each token is one ounce of pure gold on a London good delivery gold bar, with advantages such as no custody fees. Ethereum browser data shows that as of June 18, the circulation of XAU₮ exceeded 246,000, with a market value of approximately $570 million. Of course, the aUSD₮ smart contract will maintain transparency by monitoring collateral and minted tokens, and continuously evaluate the minting value (MTV) ratio using a price oracle. In addition to aUSD₮, Alloy by Tether will also support the creation of Tether assets with different support mechanisms in the future, including yield-generating products.