Proposal Idea: Gold Standard DeFi: tzGold

Research and Development
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Idea: A gold pegged token that can be mint/burn like DAI stable coin. It’s should be part of core Tezos protocol, including the gold price oracle.

  • Mint tzGold by collateralize XTZ, similar to minting DAI with ETH.
  • Only XTZ, no other tokens including BTC or ETH in initial version.
  • Initially price is denominated in USD (until USD is global reserve)
  • Incentive Liquidity for XTZ and tzGold pairs.

Why

The whole crypto DeFi depends on USD. Even if it’s algo stable coin, end of the day when USD collapse, entire crypto will collapse along with it. satoshi wants a financial system that detached from centralised systems.

Gold is lindy, fairly distributed, decentralised, global, permissionless and low inflation money. Only Tezos can bring programmability to real digital gold. Gold is store of value and medium of exchange for 1000s of years.

There is no fully decentralised and permissionless gold available in entire crypto. Tether gold is not censorship resistance. Most users prefer to store decent percent of wealth in Gold. Mcap of global ETF gold $220Bn. Even if 10% comes to tezos(because of it’s soundness), tezos can be No#1 in Defi. Global gold payments and settlements will skyrocket.

What it is for Tezos Ecosystem

Playing ETH playbook in DeFi won’t help tezos. We need to take tezos DeFi to truly global. tzGold is the way.

Currently there is no way to store real gold digitally. When tezos provides the way, lot of users will buy tezos first and convert into digital gold. This will take tezos to top defi chain.

Even i prefer to take profit in gold than useless USD. This will create whole new system around gold.

When people start takes the profit in gold, we can see Up-only for XTZ price. Because the demand for XTZ wont slow down. High priced XTZ will bring positive feedback loop.

Nice to have
Implement all the tezos features like privacy, tickets etc to the tzGold.

TLDR
Create a ultrasound digital gold in tezos core. Build DeFi around it. Make Tezos top 5 chain. Get ready for post USD global money.

tzGold/XTZ might be the real USD/ETH killer.

Here is better explaination in twitter thread https://twitter.com/YazhisaiSivanat/status/1653094514524028928

2 Likes
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I think a token based on an index of the top 25 commodities would be better than gold. Gold is a single point of failure, has been manipulated in the paper market because it was partially used as money and partially used as a commodity.

  1. Crude Oil
  2. Gold
  3. Natural Gas
  4. Silver
  5. Copper
  6. Corn
  7. Soybeans
  8. Wheat
  9. Aluminum
  10. Platinum
  11. Palladium
  12. Cotton
  13. Sugar
  14. Coffee
  15. Lumber
  16. Lean Hogs (pork)
  17. Live Cattle (beef)
  18. Cocoa
  19. Nickel
  20. Zinc
  21. Orange Juice
  22. Rice
  23. Rubber
  24. Iron Ore
  25. Brent Crude Oil
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Youves community has already approved the creation of a very similar token, see YIP-002A (youves). There has been an implementation running on testnet if I’m not mistaken but not yet brought to main net because of a perceived lack of demand by Ubinetic.

Perhaps you should follow up with them and check the status of this proposal. They are pretty responsive in their discord and telegram.

2 Likes
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Hard for people to understand basket of asset. But everyone knows about gold including tribes.

1 Like
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Love the idea. The problem is the Oracle. How could you trust the price of gold coming from an Oracle? I believe there was a stablecoin project on another chain that is Oracleless. The price is queried through a special type of DEX with logic that almost guarantees pegging. I am not sure at which scale it works. And can’t remember the name of the project right now. Perhaps it was on Ethereum.

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Also Tezos already has this unpegged play gold:

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Maybe Gold price oracle in Tezos core. Which update the price in every block. High security and trustless than chainlink kind of oracles.

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