Alloy by Tether introduces a new class of digital assets called tethered assets, designed to track the price of various assets using robust stabilization mechanisms.
Tethered assets are a versatile class of digital tokens designed to track the price of various reference assets, such as the United States dollar.
Also termed stablecoins, tethered assets can be backed by a single type of collateral, such as gold, a specific fiat currency, or a diversified portfolio of multiple assets, offering greater flexibility and risk management options. This flexibility allows tethered assets to track the price of a wide range of assets, including major fiat currencies like the U.S. dollar or euro, commodities such as gold, oil and wheat, or even other financial instruments like stocks or bonds.
