DFX Gold
Hello Community!
“Like no other commodity, gold has held the fascination of human societies since the beginning of recorded time. Empires and kingdoms were built and destroyed over gold and mercantilism. As societies developed, gold was universally accepted as a satisfactory form of payment. In short, history has given gold a power surpassing that of any other commodity on the planet, and that power has never really disappeared. The U.S. monetary system was based on a gold standard until the 1970s…” Quoted Source
I propose with the advent of DFX 3.0, and the power of chain-link oracle data. We bring the vast commodities market to the DeFi space. I believe to start; we should add Gold backed tokens to the DFX exchange. Eventually, we could branch out to silver, oil, and other commodities. The commodities market is expected to reach 5 trillion dollars by 2026. Picture DFX as the one stop shop for Forex trading a 6 trillion market and commodities.
Gold)
I believe the DFX exchange should be the forefront of the crypto Forex and Commodity markets. We should start with the beacon of the commodity market, Gold.
Paxos Gold – (PAXG):
“Pax Gold (PAXG) is a digital asset. Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company.”
Liquidity Pools)
Once we’ve selected which Gold backed tokens we’d like to use, the question remains, how do we best implement it? First, I think we should create pools of Gold backed tokens and our individual stable coins. Where your assets and can be backed in gold. As the value of your currency rises or falls in relation to the price of gold. Gold tokens can be used as a hedge to any price fluctuations.
Gold/USDC
Gold/EuroC
Gold/Turkish Lira
These would be incredibly powerful liquidity pools, that would be hedge against inflation.
Basket of Commodities)
Eventually we could offer baskets of commodity backed tokens of silver, oil, lumber, etc. I think to start we choose gold and branch out from that, but the potential is huge. Why paper trade commodities on the stock market? When you can earn a high % yield on your commodities in the DeFi space.
Motivation
[Describe the motivation behind the proposal, the problem(s) it solves and the value it adds. This is your chance to show why this proposal is necessary, and how the changes would benefit DFX if implemented. Include any relevant background information.]
Specifications
Using the “create pool” option I’ve already added PAXG / USDC. Key now is adding gauges and incentives.
If Proposal Passes
We add a gauge to the pool, and vedfx users can vote to add incentives. We could also reach out to Paxos to see if they would be interested in tweeting out the LP or potentially help sponsor it.
If Proposal Fails
We don’t add a gauge.
Vote
- Yes I support PAXG / USDC and DFX Gold
- No it’s a terrible idea. We shouldn’t add commodities