Proposal: Paxos Gold (PAXG) listing

Summary

I think it’s a good idea to add Paxos Gold (PAXG) as collateral to CREAM finance platform. PAXG is issued by a reputable company (Paxos) and is backed 1-1 by physical gold. The usage and trading volumes have expoded over the past month. No lending platform has listed PAXG yet and CREAM could be the first one.

For

Add Paxos Gold (PAXG) as a collateral asset

Against

“Do nothing”

Motivation

No collateral on this planet is more stable than the physical gold.

PAXG is backed 1-1 by allocated physical gold in a vault. It is managed by Paxos. Paxos runs a big exchange - itBit. Paxos manages crypto stuff for PayPal’s. PAXG is widely considered safe. It can be priced to the liquid Binance market or global gold market because it’s backed 1-1 by physical gold. Maker DAO has already voted in PAXG as collateral but they are still waiting till it’s implemented. CREAM could be faster.

There are millions of dollars posted as collateral on CREAM while FED keeps destroying their value. Being able to post gold as collateral, with literally 0 fees for holding PAXG tokens backed by gold in the vaults, would be an attractive alternative. I am not aware of any other platform that holds gold in a vault for you and doesn’t charge yearly fees.

Background

contract address:
0x45804880de22913dafe09f4980848ece6ecbaf78

Current market cap: $249m

24 Hour Trading Vol reported by Coingecko: $24m

Market cap has exploded from $108m to $249m between 6th and 20th of May 2021 and keeps growing.

Specification

There is a small complication in the form of the 0.02% fee on each transfer (“fee on transfer” ERC20). This low fee is reasonable, considering how expensive it is to manage physical gold in the vault. There are liquid PAXG markets on Uniswap V2 which work ok despite the fee on transfer

I really like the idea to bring real assets to the blockchain. I think im not the only one who believes, that this is the future of finance and that the goal should be, that you have all your assets on the blockchain and you can do awesome things. Especially the recent dump has shown me how important it is to diversify your portfolio.

With PAX Gold you have expsure to the gold price, could borrow stables agains it and earn yield on top of that. Really really like this and i think gold is a very good collateral for a loan. So i support this proposal.

In addition, i think its very good marketing for cream <3