# Proposal Idea: Gold Standard DeFi: tzGold
**URL:** https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373
**Category:** Research and Development
**Tags:** defi
**Created:** [April 30, 2023, 7:24pm UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373 "2023-04-30T19:24:05Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@YazhisaiSivanathan](https://forum.tezosagora.org/u/YazhisaiSivanathan)
#### Post date: [April 30, 2023, 7:24pm UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/1 "2023-04-30T19:24:05Z")
**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](https://twitter.com/YazhisaiSivanat/status/1653094514524028928)
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### Author:  [@RichAyotte](https://forum.tezosagora.org/u/RichAyotte)
#### Post date: [May 1, 2023, 2:52pm UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/2 "2023-05-01T14:52:38Z")
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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### Author:  [@Quixotic](https://forum.tezosagora.org/u/Quixotic)
#### Post date: [May 2, 2023, 2:45am UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/3 "2023-05-02T02:45:00Z")
Youves community has already approved the creation of a very similar token, see YIP-002A ([youves](https://app.youves.com/governance)). 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.
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### Author:  [@YazhisaiSivanathan](https://forum.tezosagora.org/u/YazhisaiSivanathan)
#### Post date: [May 4, 2023, 11:23am UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/4 "2023-05-04T11:23:40Z")
Hard for people to understand basket of asset. But everyone knows about gold including tribes.
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### Author:  [@TezosGovernance](https://forum.tezosagora.org/u/TezosGovernance)
#### Post date: [May 10, 2023, 2:53pm UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/5 "2023-05-10T14:53:57Z")
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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### Author:  [@TezosGovernance](https://forum.tezosagora.org/u/TezosGovernance)
#### Post date: [May 10, 2023, 2:55pm UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/6 "2023-05-10T14:55:34Z")
Also Tezos already has this unpegged play gold:
> **[gold](https://teia.art/gold)**
>
> Bake Nug Tezos Bakery: Baking Nuggets of Digital Gold! Mine for XTZ by collecting our Gold Nuggets. Proceeds from sales are held in treasury. Treasury XTZ staking rewards are redistributed to collectors. Proceeds from royalties increase the value...
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### Author:  [@YazhisaiSivanathan](https://forum.tezosagora.org/u/YazhisaiSivanathan)
#### Post date: [May 12, 2023, 4:27am UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/7 "2023-05-12T04:27:25Z")
> [@TezosGovernance](#):
>
> 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.
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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### Author:  [@YazhisaiSivanathan](https://forum.tezosagora.org/u/YazhisaiSivanathan)
#### Post date: [May 12, 2023, 4:30am UTC](https://forum.tezosagora.org/t/proposal-idea-gold-standard-defi-tzgold/5373/8 "2023-05-12T04:30:16Z")
> [@TezosGovernance](#):
>
> [teia](https://teia.art/gold)
Link is not opening