Paxos Launches PAXGy, with Yield Linked to Gold Lending Market
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Paxos Labs has launched PAXGy (PAXGY), a token backed by PAX Gold (PAXG) that allows for yield generation through institutional gold lending, without changing the number of tokens held by the investor. As Paxos Labs explained in a note, holders can deposit PAXG or exchange compatible stablecoins to receive PAXGy through participating platforms or directly on-chain. The reserves backing the token are then allocated to selected institutional borrowers, utilizing the already established gold leasing market. The investor's token balance does not increase. Instead, the model aims for the yield to translate into an improved exchange rate against PAXG, so that one PAXGy can be redeemable for a greater amount of PAXG over time. It is the exchange rate that incorporates the yield. Launch partners include OKX, X Layer, 0x, Uniswap, Ether.Fi, and Chainlink, allowing access to PAXGy on both centralized and decentralized platforms. The structure is designed to maintain exposure to tokenized gold, but through an asset linked to the institutional bullion lending market. You may also be interested in: Who will lead Anthropic after its IPO? Founders aim for 50.1% of the vote That same structure implies more risk. Paxos Labs emphasizes that PAXGy carries credit, liquidity, and market risks, as its reserves are allocated to external strategies instead of being limited to passive gold exposure...
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