GOLDx is the first gold protocol built upon Open Gold Protocol by dForce. It is a digital gold token (ERC-20 token) deployed on Ethereum. dForce Trade immediately supports GOLDx swap against all major stablecoin pairs and dForce Yield Market will soon support GOLDx with yield.
As a synthetic and decentralized digital gold token, GOLDx is 100% backed by constituent gold tokens on-chain (currently with PAXG as its sole constituent gold reserve). We will evaluate and add more gold tokens into the reserve in the future (aka ETF). Security audit is completed and please click here to view the full report.
GOLDx offers attractive merits compared with other market offerings:
· GOLDx represents the ownership of London Good Delivery gold certified by the London Bullion Market Association (through underlying asset PAXG), with price tracking the gold spot price from LME. The minimum mintage in GOLDx is 0.001, allowing investors to own a minuscule portion of gold.
· Unlike other digital gold tokens, GOLDx is denominated in gram instead of troy ounce (1 troy ounce = 31.1034768 grams), which is easy for fractional ownership and mass adoption, making it easy for exchanges and DeFi protocols to build derivatives on top of GOLDx.
· Gold with Yield. dForce will introduce yield market for GOLDx, so owning GOLDx is not just a passive gold hoard but cashflow positive.
· Support redemption of physical gold through designated agents and brokers worldwide.
· Zero fees associated with GOLDx’ on-chain transactions, 100% compatible with all DeFi protocols and easy for DeFi integrations (noted that there will be fee levied by PAXG issuer, i.e Paxos for conversions to PAXG and vice versa).
· All DeFi protocols across the dForce ecosystem will support GOLDx, including trading, lending, derivatives, etc. We will soon introduce yield market for GOLDx.
· dForce Swap supports the swap of GOLDx against all mainstream stablecoins, including USDx/USDT/USDC/DAI/PAX/BUSD/HUSD/TUSD. More exchanges and DEX onboarding are in the progress.
More About Underlying Asset (Constituent Gold Reserve)
GOLDx is a synthetic digital gold token. We have performed in-depth assessments for the selection of underlying reserve tokens to mint GOLDx, including regulatory compliance, custody of physical gold, financial audit and disclosures, circulating market capitalization, price peg, transparency with asset issuer and custodian institution, code security, number of exchanges supported, delivery of physical gold, bankruptcy protection, etc, and ultimately selected PAXG as the sole constituent at launch, which can be adjusted through on-chain governance in the future (it can peg to one or a basket of constituent digital gold tokens)
Anyone can use the protocol to mint GOLDx or re-convert it back to its constituent gold tokens. User deposits PAXG into the GOLDx contract and will receive pro rata GOLDx denominated in gram, and vice versa. However, it is much easier to acquire GOLDx or convert GOLDx into stablecoins by simplying using our swap protocol at dForce Trade. We will integrate more DEX support in the future and also welcome all exchanges support.
Paxos is a chartered trust company regulated by the New York State Department of Financial Services (NYDFS). By tokenizing gold and putting it on a blockchain, anyone who owns PAX Gold owns the underlying gold which is held under the custody of Paxos Trust Company. The underlying asset of PAXG is London Bullion Market Association -accredited London Good Delivery gold bars held in the most secure vaults in the world.