The post Tether Looks To Compete Against DeFi With Upcoming Synthetic Asset Platform  appeared on BitcoinEthereumNews.com.

Tether launched a gold-backed USD stablecoin demonstrating its forthcoming “Tethered asset” platform, Alloy. Tether, the team behind the largest stablecoin by market cap, is launching a new platform offering a centralized alternative to leading DeFi money market protocols. On June 17, Tether announced the launch of aUSDT, a U.S. dollar stablecoin backed by an overcollateralized tokenized gold position of gold. aUSDT is overcollateralized by Tether Gold (XAUt), a gold-pegged stablecoin representing ownership of physical gold custodied in Switzerland. “[aUSDT] by Tether provides long-term holders the opportunity to maintain exposure to gold, while in parallel obtaining a dollar-referenced Tethered Asset for payments and day-to-day economy,” Alloy said in a post on X. Tether described aUSDT as its first “tethered asset,” offering the utility of fiat currency while deriving its value from a different asset. aUSDT is also the first asset issued via Tether’s forthcoming Alloy platform. Is Tether looking to compete with DeFi? Tether appears to be positioning its Alloy platform as a CeFi alternative to top money market protocols like Aave and Curve, both of which allow users to mint native stablecoins (GHO and crvUSD, respectively) against overcollateralized positions of other crypto assets. GHO and crvUSD positions are managed by smart contracts, with users able to permissionlessly deposit collateral, mint stablecoins, and burn their stablecoins to redeem the underlying collateral. Users also face liquidation should the value of their deposits risk under-collateralization due to price movements. Similarly, permissioned Alloy users can mint aUSDT by depositing XAUt positions to a smart contract. Users can also manage their positions and redeem aUSDT for underlying XAUt, and face liquidation should the value of their collateral fall below a specific over-collateralization ratio. Tether also teased Alloy’s upcoming deployment as an “open platform” allowing users to create overcollateralized Tethered Assets backed by a wide range…

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Filed under: News - @ June 18, 2024 12:22 pm