Security

At Aegis, security is the cornerstone of our operations, ensuring that our delta-neutral stablecoin, USDa, is protected against various risks while maintaining its stability and reliability. Our security measures are designed to provide robust protection through a multi-layered approach, encompassing mint security, Bitcoin-backed collateral, and off-exchange settlement. Here’s a detailed look at our security framework:

Mint Security Layer

To maintain the integrity and stability of USDa, we have implemented a stringent mint security layer. New USDa can only be created when USDT, USDC, or DAI is deposited into the Aegis Mint smart contract. This process ensures that every USDa minted is backed by a corresponding amount of these stablecoins, preventing the creation of unbacked or fraudulent tokens. This layer of security guarantees that the value of USDa remains stable and fully collateralized.

Backed by Bitcoin

Aegis further fortifies the security and stability of USDa by holding Bitcoin as collateral. This approach leverages Bitcoin’s status as a reliable and valuable asset. To stabilize USDa, Aegis sells Bitcoin-margined perpetual contracts equal to our exposure to Bitcoin. This strategy not only backs USDa with a robust asset but also provides a mechanism to mitigate volatility, ensuring that the value of USDa remains stable even during market fluctuations.

Off-Exchange Settlement

Security risks associated with centralized exchanges are a significant concern in cryptocurrency. To mitigate these risks, Aegis employs an off-exchange settlement approach. We use renowned custodians to store assets in their vaults, ensuring that assets never reside on centralized exchanges. This method reduces the risk of hacking and other security breaches common with centralized exchanges, providing additional protection for our users.

Comprehensive Security Measures

• Transparency: Aegis provides real-time access to detailed information about reserves and profit calculations. Our clients can monitor Aegis market positions on exchanges, ensuring full transparency and trust.

• Institutional-Grade Custodians: We partner with top-tier custodians to store assets securely, leveraging their expertise and infrastructure to safeguard our collateral.

• Continuous Monitoring: Our systems continuously monitor the market and our collateral to ensure that all assets are secure and adequately backed.