Wu said that he learned that Paxos Labs has launched PAXGy, a yield-bearing gold token backed by PAX Gold (PAXG). Its goal is to let token holders grow their holdings in gold terms, rather than earning a return in USD. Users can deposit PAXG or exchange PAXG using supported stablecoins to obtain PAXGy. Its underlying reserves are lent out via the traditional gold lending market to vetted institutional borrowers. The resulting yield is reflected in the exchange rate of PAXGy to PAXG—i.e., the number of tokens remains unchanged, but over time each PAXGy can be redeemed for more PAXG. PAXGy is based on ERC-20 and can be obtained and used via OKX, X Layer, Uniswap, 0x, and EtherFi. Its underlying PAXG is issued by Paxos and is supported 1:1 by physical gold.