Paxos Labs launches PAXGy. The name sounds like “gold stored and left untouched,” but the mechanism isn’t that simple.
This is a gold-yielding token backed by PAXG. It has been integrated with platforms including OKX, X Layer, Uniswap, 0x, Ether.Fi, and more. The number of tokens held by each holder remains unchanged, but if the underlying gold lending strategy generates returns, the amount of PAXG each PAXGy can be exchanged for will increase. Source: NewsBTC.
Bullish investors will focus on two points: first, that it advances “holding gold on-chain” to “gold-on-chain that earns yield”; second, whether it can improve the capital efficiency of the PAXG and RWA gold track. Risks are also direct: borrower default, liquidity, and market volatility could all reduce the exchange rate. Which do you care about more—liquidity coming first, or PAXG demand amplifying first?
Figure 1: Paxos launches yield-bearing gold token PAXGy · Key news points
Image source: https://www.newsbtc.com/altcoins/paxos-labs-launches-gold-token-that-can-earn-a-return-in-gold/
This is a gold-yielding token backed by PAXG. It has been integrated with platforms including OKX, X Layer, Uniswap, 0x, Ether.Fi, and more. The number of tokens held by each holder remains unchanged, but if the underlying gold lending strategy generates returns, the amount of PAXG each PAXGy can be exchanged for will increase. Source: NewsBTC.
Bullish investors will focus on two points: first, that it advances “holding gold on-chain” to “gold-on-chain that earns yield”; second, whether it can improve the capital efficiency of the PAXG and RWA gold track. Risks are also direct: borrower default, liquidity, and market volatility could all reduce the exchange rate. Which do you care about more—liquidity coming first, or PAXG demand amplifying first?
Figure 1: Paxos launches yield-bearing gold token PAXGy · Key news points
Image source: https://www.newsbtc.com/altcoins/paxos-labs-launches-gold-token-that-can-earn-a-return-in-gold/
