Aetheris Whitepaper
Version 1.0 | June 2026 | ASA ID: 3581842047 | Algorand Mainnet
Abstract
Aetheris (AETF) is a diversified, on-chain token pool built on Algorand. AETF trades through public liquidity markets against USDC, tokenized Gold, tokenized Silver, HOG, and xALGO.
AETF is designed to offer diversified exposure through public markets. Permissionless arbitrage may align AETF prices across pools, but the pools do not enforce target weights, guarantee NAV tracking, or provide fixed-price redemption. The ASA itself is simple; the external AMM pools have their own smart-contract and liquidity risks.
📌 Strategic Update (June 2026): AETF rotated its FOLKS position back into xALGO (Folks Finance liquid-staked ALGO), restoring liquid ALGO exposure as the growth sleeve. The ~70% defensive / ~30% growth split describes launch targets; actual pool-side composition drifts with market activity and remains verifiable on-chain.
1. Problem
Crypto portfolios are inherently volatile. Most tokens on any given blockchain are highly correlated — when the market drops, everything drops together. Investors seeking diversification must manually manage multiple positions across different asset classes, incurring fees, complexity, and execution risk.
On Algorand specifically:
- Diversified, index-style basket tokens are scarce
- Real-world assets (Gold, Silver) are available via Meld Gold but underutilized
- DeFi and liquid-staking assets like xALGO capture ecosystem growth but sit siloed from safe-haven assets
- No product bridges traditional safe-haven assets with DeFi-native exposure
2. Solution
AETF solves this by packaging five distinct asset classes into one token:
| Asset | Launch Allocation | Role | Provider |
|---|---|---|---|
 USDC | 35% | Dollar-denominated quote asset and defensive launch target | Circle |
 Gold (GOLD$) | 17.5% | Inflation hedge — physical gold, tokenized and auditable | Meld Gold |
 Silver (SILVER$) | 17.5% | Precious metals diversification — physical silver, tokenized | Meld Gold |
 HOG | 15% | DeFi market maker — grows with Algorand ecosystem liquidity | LiquiHog |
 xALGO | 15% | Liquid-staked ALGO — ecosystem growth exposure plus native staking yield | Folks Finance |
Launch defensive allocation (USDC + Gold + Silver): ~70%
Launch growth allocation (HOG + xALGO): ~30%
📊 Dynamic allocation: These are launch targets. Actual pool-side weights can drift as markets trade, arbitrage, and liquidity changes. Arbitrageurs optimize for trade profit, not for enforcing AETF targets or buying assets because they are fundamentally cheap. Live pool-implied composition is displayed on aetherisetf.com.
3. How It Works
3.1 Structure
AETF is an Algorand Standard Asset (ASA) with a fixed supply of 10,000 AETF. The token is paired with each of the five basket assets in separate liquidity pools on Tinyman DEX:
- AETF / USDC
- AETF / GOLD$
- AETF / SILVER$
- AETF / HOG
- AETF / xALGO
Each pool was seeded with liquidity based on launch targets. The combined value can be reported as pool-implied marked TVL, but it is not an independent NAV calculation or a fixed redemption reserve. Current weights drift with market trades and liquidity flows.
3.2 Passive Rebalancing
AETF does not contain an allocation-rebalancing contract. Public AMM activity may create cross-pool arbitrage:
- AETF can trade at different prices across its pools after market movement or a trade
- Arbitrage traders may trade when the price difference exceeds fees, slippage, and risk
- That activity can align AETF prices while reserves and economic weights drift
- Arbitrageurs are not required to enforce targets or buy an asset because it is fundamentally cheap
This creates a market-alignment mechanism, not a guaranteed portfolio rebalancer. There is no fixed-price protocol redemption mechanism.
3.3 Price Discovery
AETF's observable price is determined by trading across the five pools. The primary price reference is the AETF/USDC pool because USDC supplies a dollar-denominated quote. A pool-implied marked value can be calculated from the pool states, but it is not an independent NAV or a fixed redemption price.
4. Risk Architecture
Allocations below reflect launch targets. Actual pool-side weights can shift through market trades and liquidity flows; these targets are not a guaranteed floor or current NAV statement.
Downside Protection
- USDC (~35% at launch): Dollar-denominated quote asset and defensive sleeve; it is not a guaranteed AETF price floor
- Precious metals (~35% at launch): Gold and Silver add different market exposures; their value and liquidity can vary
- Combined ~70% defensive target: Launch design only; actual pool-side weights can drift
Upside Capture
- HOG (~15% at launch): Captures Algorand DeFi ecosystem growth — as on-chain activity and liquidity increase, HOG benefits. As AETF grows, its share of HOG's total liquidity increases, effectively scooping up more of the market maker
- xALGO (~15% at launch): Liquid-staked ALGO exposure through Folks Finance; review the provider's current liquidity and redemption terms
Risk separation
- AETF is a standard ASA — no complex contract logic that can be exploited
- Liquidity pools are managed by Tinyman's audited, battle-tested AMM
- The current ASA freeze and clawback fields should be verified from the live chain; the AMM pools remain separate third-party smart-contract systems
5. Tokenomics
| Parameter | Value |
|---|---|
| Token Name | Aetheris ETF (immutable on-chain ASA name; brand: Aetheris) |
| Ticker | AETF |
| ASA ID | 3581842047 |
| Total Supply | 10,000 AETF |
| Decimals | 6 |
| Blockchain | Algorand |
| Launch Price | $2.44 |
| Freeze / clawback fields | Verify current zeroed state from the live ASA record |
Supply Distribution
The entire supply of 10,000 AETF was initially deployed across five public liquidity pools. Current balances and pool-side weights change with swaps, arbitrage, and liquidity operations, so launch targets are not current allocation guarantees. Pool balances are publicly verifiable, but this does not create fixed-price redemption.
6. Verification & Transparency
On-Chain Verifiability
Every aspect of AETF is publicly auditable:
- Pool balances are visible in real-time on Algorand explorers
- Token holder distribution is publicly queryable
- All transactions are recorded on the Algorand blockchain
- Pool-implied marks can be calculated from pool states; independent NAV depends on external pricing and the absence of a fixed redemption mechanism
Underlying asset references
| Asset | Verification Method |
|---|---|
| USDC | Circle reserve disclosures; AETF pool balance visible on-chain |
| GOLD$ | Meld Gold asset; current provider backing and redemption terms should be verified separately |
| SILVER$ | Meld Gold asset; current provider backing and redemption terms should be verified separately |
| HOG | On-chain AETF/HOG liquidity market; LiquiHog project |
| xALGO | Folks Finance liquid-staked ALGO asset; current provider liquidity and redemption terms should be verified separately |
7. Roadmap
Phase 1 — Launch ✅
- Token creation and liquidity seeding
- Website launch (aetherisetf.com)
- Tinyman and Vestige integration
- Community building and first communications
Phase 2 — Growth (Q3 2026)
- Pera Wallet verification
- TVL growth to $100K+
- Expanded holder base (25+ holders)
- Whitepaper publication
- Community engagement (Twitter, Reddit, Algorand ecosystem)
Phase 3 — Integration (Q4 2026)
- Folks Finance collateral listing proposal
- Cross-protocol composability
- Advanced analytics dashboard with live allocation tracking
- Partnerships with Algorand ecosystem projects
Phase 4 — Scale (2027)
- TVL target: $1M+
- Potential basket expansion (additional asset classes)
- Governance framework for allocation adjustments
- Institutional onboarding pathways
8. Competitive Advantage
| Feature | AETF | Typical DeFi Token |
|---|---|---|
| Diversified backing | ✅ 5 assets | ❌ Single asset |
| Defensive launch target | ✅ ~70% at launch | ❌ None |
| LP fee exposure | ✅ Fees accrue to LP positions | ❌ None |
| Custom allocation contract | ✅ None in AETF ASA | ⚠️ Varies |
| Market alignment | ✅ Permissionless AMM arbitrage may align prices | ❌ Requires a separate policy |
| Transparency | ✅ Fully on-chain | ⚠️ Varies |
| ASA authority visibility | ✅ Publicly verifiable | ⚠️ Varies |
9. Risks & Disclaimers
Risks
- Market risk: All basket assets are subject to price volatility
- Liquidity risk: Thin pool depth may cause slippage on large trades
- Oracle/pricing risk: Asset prices depend on DEX liquidity and market activity
- Concentration risk: HOG represents a single DeFi project; its failure would impact its share of the basket (~15% at launch)
- Regulatory risk: Tokenized assets operate in an evolving regulatory landscape
- Impermanent loss: Liquidity pool positions are subject to impermanent loss during volatile periods
Disclaimer
AETF is not a registered security, investment fund, or financial product. It is a decentralized token on the Algorand blockchain. Nothing in this document constitutes financial advice. Users should conduct their own research and understand the risks before purchasing AETF. Past performance does not guarantee future results.
10. Links
- Website: aetherisetf.com
- Tinyman: Buy AETF
- Vestige: Track AETF
- Twitter: @AetherisETF
- Explorer: ASA 3581842047