Virtual on Physical Foundations

Governments today issue currency that is not backed by a physical commodity, such as gold or silver, but rather it is backed only by the government that issued it.  Many cryptocurrencies have no physical backing or intrinsic value. Without the authority of a government or transparency about how the company issuing the cryptocurrency supports the cryptocurrency’s value, it can be difficult to trust in the company or value of the cryptocurrency.

Crypto Stablecoins are different. Most crypto Stablecoins are crypto coins that try to represent a crypto equivalent to a currency or asset. If we had for example a USD Stablecoin, to achieve this then when it is issued, a US dollar would be purchased and put in reserve for every crypto Stablecoin created. In the case of a Stablecoin based on an asset such as gold then generally gold would be placed in reserve for every crypto Stablecoin created.

In some cases, a combination of assets or currencies are placed in reserve to provide the equivalent value of the currency or asset the Stablecoin represents. This reserve is increase or decreased to represent the increase in Stablecoin issuance or decreased to compensate for a Stablecoin burning.

There is also a category of Algorithmic Stablecoins that automatically buy or sell a combination of crypto coins to provide stability in the value of the said Stablecoin. Although new in concept this method had so far proven to be a large failure with the demise of Terra Luna Stablecoin having resulted in 18 billion dollars being wiped out.

Each minted Aureus Coin however is backed Australian real estate. In addition, issuer has a buyback scheme where purchasers can at worst regain at least 90% of their original value if purchased directly from the Aureus Coin Exchange. In this respect Aureus Coin is a new concept in Stablecoins. The coin can still be traded on other exchanges and the value can go above the stable value, however if the value ever falls below 90% of your original purchase value from the Aureus Coin Exchange you can apply for a buy back to regain most of the original purchase amount. For this reason, we call Aureus Coin a foundation Stablecoin, because at its foundation is the opportunity to recover most of your original purchase value.

Pacific Rim is the Company that issues Aureus Coin, and holds and controls a portfolio of Real Assets, which it will continue to grow and manage. Pacific Rim currently holds more than five million Australian Dollars ($5,000,000) worth of Australian real estate. We will use this portfolio to support the issue of Aureus coins and will continue to grow the portfolio with funds raised in the sale of Aureus coins to ensure the issued Aureus coins are supported by tangible assets.

Aureus initially was based directly on the Ethereum network as it is a stable, mature, and secure blockchain. Ethereum also allows ease of exchange with other ERC20 coins and transparency in transactions. However recently Ethereum transactions fees have been very high often reaching the level of $15 to $25 for the simple minting and sending of ERC20 coins like Aureus.

A solution was found by issuing the Aureus ERC20 contract on the Polygon network. Polygon is an Ethereum second layer blockchain, so it inherits most of the stability and security of the Ethereum network. However, as Polygon already uses proof of stake (PoS) transactions are very cheap, sometimes as little as 1 cent.

The upcoming upgrade of the Ethereum networks from Proof of Work (Pow) to Proof of Stake (Pos) will dramatically reduce the energy used to power the network down to 0.5% of the current power usage. Ethereum will also be capable of faster settlement and a greater number of transactions pers second, theoretically 100,000 tps.  High transactions per second and cheaper transactions will come at a later stage.

Polygon is a second layer Ethereum solution with several advantages over Ethereum therefore Polygon was chosen to be the blockchain network behind Aureus. Currently Aureus Coin transactions are settled quickly at around 5 seconds and for as little as 1 cent a transaction. This all benefits the buyer experience.

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