# Collateral Verification

ELUSD is issued on a fully reserved basis against USDT, with at least 100% of all ELUSD in circulation backed by USDT at all times.

All USDT flows related to issuance, redemption, and reserve management are made transparently observable either directly on-chain via smart contracts or through APIs secured with zkTLS, which provide verifiable balance and flow proofs without exposing sensitive underlying data.

We aim to provide real-time Proof-of-Reserves so that USDT collateral consistently exceeds the total supply of ELUSD, maintaining a strict value parity of **1 ELUSD = 1 USDT**.
