How AUD AER works

The model is deliberately simple: a dollar in, a token out; a token in, a dollar out — with the books checked by machine every minute of every day.

Minting — how AUD AER is created

1. A verified client sends Australian dollars to Aeredium's safeguarded reserve account.
2. The banking rails are watched directly by Aeredium's observer layer, running inside attested hardware. At least two of three independent observers must report the deposit identically before it is accepted.
3. The issuance contract on Iridium checks the supply invariant: total AUD AER on issue, across all chains, may never exceed the most recently attested reserve position.
4. Only then do the hardware enclaves co-sign a mint instruction, and the client receives newly minted AUD AER — one token for every dollar received.

Redemption — how AUD AER is destroyed

1. A client presents AUD AER for redemption through the client portal.
2. The tokens are burnt on-chain — destroyed immediately and permanently. Burnt tokens can never re-enter circulation.
3. The burn is observed and quorum-attested by the same hardware observer layer.
4. The corresponding Australian dollars are released from reserves to the client through the banking rails. Supply and reserves contract together, keeping the ratio at exactly one.

The reserve, in detail

Every AUD AER on issue is backed by one fiat Australian dollar. The composition of that backing follows a published policy:

Stage	Reserve composition
Until reserves reach $5 million	100% Australian dollar currency held as liquidity.
Beyond $5 million	The excess is invested in Treasury bills, bonds and equivalent instruments issued by the Australian Government, moving toward a target composition of 20% liquidity and 80% Australian Government securities.

The yield earned on those government securities finances Aeredium's operations and constitutes Aeredium's revenue. Reserves are never lent, staked, or otherwise put at risk.

What keeps the ratio honest

The one-to-one ratio is not a policy that staff follow; it is a rule the system physically enforces. The issuance contract checks reserves on every single mint through two independent paths — the enclaves that sign the mint, and the independent watcher attestations — and takes the minimum of the two. Any discrepancy halts issuance automatically. On top of that, the AI monitoring system reconciles the entire outstanding supply against reserves every 60 seconds and attests the result on-chain. More on the attestation model →

Where AUD AER lives

AUD AER is minted in exactly one place — Iridium, Aeredium's settlement blockchain — and can travel to other public networks such as Ethereum and Arbitrum through a burn-and-mint mechanism controlled by the same hardware quorum on every chain. There is no third-party bridge and no pooled collateral: at every instant, the sum of AUD AER across all chains equals net issuance on Iridium. How multi-chain works →