Any ideas on gold pegged stablecoin?

General Discussions Stablecoins
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Heya!
Recently, I read this BCW message:

Economy, real-estate, covid, … is overblown.

The reversal is imminent. Violent. Sharp. Ugly.

They will blame it to some catalyst. But the catalyst doesn’t matter… it’s a matter of time.

Even the entire dollar or euro might collapse on some level.

Crypto is not yet strong enough to become the replacement, but who knows… could surprise us. For now, crypto is still following stocks.

The answer: GOLD.

Price of gold is 1801$ per ounce at the moment.

Refer back to this post 1 year from now.

Cheers my friend!

This got me thinking, if we will ever have to invest in gold, we might end up having to deal with banks or other companies that would try to get benefits from transactions. Also, it would be difficult to trust them fully.

It would be cool if there was a gold pegged stable coin on the Sovryn exchange. That would make things much easier to invest in “gold”, and also, gold is considered to be one of the most stable assets in terms of price fluctuation.

So, the idea is that, in the worst-case scenario when crypto and fiat lose their value together, it will be a lifesaver to have a quick option to convert some percentage of our portfolio into a “crypto gold” on the Sovryn exchange.

There is a saying that instead of focusing on winning, it’s better to start preparing for defeat, so that if defeat comes, we will survive

What do you think about this idea? :smiley:

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The problem with gold pegged assets is how are they collateralized. There are many projects out there backed up with gold. The coin issuer would have to have a vault for the physical gold. You should be able to exchange the tokens for gold. Other solutions would not satisfy me.

I’ve found this old article - I think that is a good starting point to learn more how those projects did over the years.

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But maybe we could have another aggregated stablecoin - GLD-USD or Au-USD- aggregated basket of gold backed stablecoins. That is something that we can think of.

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i think this is a good idea. I prefer to take cover with gold than usd on bear market.

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We could inquire about Blindex.io using their Frax-inspired pegging mechanism to allow us to mint a Gold Ounce peg. It would be pretty experimental, but that’s what Blindex really seems to be going for. You can mint BDEU & BDUS (Euro & Dollar pegs respectively) at this time… but a gold peg over there would be cool!

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We can definitely do something like that. Without the need to hold physical gold!

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So I am guessing that this would be a Gold pegged BDGold, but backed by rBTC, rather than by Gold?

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If it will be a stablecoin that was created by Blindex then yes. It will only be pegged to the gold price and not backed by real gold. Blindex platform is built to accommodate only decentralized collateral. So in our case RBTC and ETHs.

Owning gold and using it as collateral is very decentralized way of obtaining collateral. With multiple points of failure. Such as who is validating the gold, the storage, the quantity, etc. And much more.

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That is quite demanding task to have a stablecoin pegged to gold, but collateralized in other assets. I would like to learn more about it.