100% Peg Guarante
Ensuring a 100% peg between real-world assets (RWAs) and their tokenized versions is one of Altai’s core principles. Unlike stablecoins and some other RWA projects that struggle with depegging risks, Altai’s on-demand minting and burning model, combined with Pyth Network’s oracle swap mechanism, guarantees that each token is always fully backed by real-world value.
🔹 How Altai Ensures a 100% Peg
1️⃣ No Pre-Minted RWA Tokens
In Altai, RWA tokens are never pre-minted to avoid oversupply or unbacked circulation.
This means that a tokenized commodity (e.g., AXAU for gold) only exists if a user purchases it with real value (BUSD).
Since no extra tokens are ever created, the risk of inflation, depegging, or liquidity mismatches is eliminated.
✅ Every token in circulation is backed by actual value.
2️⃣ Minting Process: Token Creation Only When a User Buys
When a user buys tokenized gold (AXAU), they deposit BUSDinto the smart contract.
The contract immediately fetches real-time price data from Pyth Network’s oracle to determine the equivalent amount of AXAU.
That exact amount of AXAU is minted and sent to the user, ensuring a 1:1 backing with real assets.
✅ No new AXAU exists unless a user has provided real capital (BUSD).
3️⃣ Burning Process: Token Destruction When a User Sells
When a user sells their AXAU back to the platform, the smart contract executes a burn process:
The contract removes the corresponding AXAU from circulation.
In return, the user receives BUSD equivalent to the real-time market value of gold.
This prevents excess supply and ensures that no token exists without real-world backing.
✅ Every token sold is burned, maintaining perfect supply control.
4️⃣ Pyth Network’s Oracle Swap Mechanism
Altai integrates Pyth Network’s decentralized oracles, ensuring that tokenized RWAs always reflect accurate real-world prices.
The oracle fetches real-time price updates from traditional commodity exchanges and institutional-grade financial data providers.
This means that every swap (minting or burning) happens at the true market value of the underlying asset.
✅ No price manipulation or devaluation—only real-world verified prices.
5️⃣ Full Peg Security: No Unbacked Tokens Can Exist
Altai’s mint-and-burn model ensures that the number of tokenized RWAs in circulation always matches the real assets deposited.
Since tokens cannot be created out of thin air, there is zero risk of depegging or under-collateralization.
No unbacked tokens = No artificial supply inflation = Guaranteed peg stability.
✅ Even during high market volatility, the peg remains intact because tokens are minted and burned dynamically.
🔹 Why This Model is Superior?
🚀 No Risk of Over-Issuance – No extra tokens exist beyond real collateral. 🚀 Automatic Peg Adjustment – Tokens are minted and burned based on actual user demand. 🚀 100% Real-World Backing – Every token in circulation corresponds to real asset value. 🚀 Oracle-Verified Pricing – Pyth Network ensures that the price reflects actual commodity market rates. 🚀 No Need for Algorithmic Adjustments – Unlike algorithmic stablecoins, Altai doesn’t rely on complex stabilization mechanisms.
🔹 Conclusion
Altai’s fully collateralized, mint-and-burn system, powered by Pyth Network’s oracle swaps, ensures that RWA tokens are always backed 1:1 with real-world assets. This creates a stable, secure, and transparent commodity exchange where users can trade with full confidence in the value of their digital assets.
With Altai, every tokenized commodity is as real as its physical counterpart.
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