The Golden Pickle

After thinking about new ways we can capture value I put forward an idea on discord about a multi collateral gold stablecoin/jar.

I’m not sure how feasible the idea is (it’s a bit of a shower-thought), and I’ve not thought through the finer details, but there are a few different strategies that we could employ. For example, we could try to peg the price of gold tokens (similar to the off peg bad, on peg good idea), and/or they could be used as collateral. If this worked it could be a game changer…

If we can produce a yield on gold, that’s a whole lot of value in the world up for grabs. Any yield at all for gold investors would be huge – there are storage fees being paid on trillions of dollars worth by current gold investors. In addition, holding a multi collateral gold token would also reduce counterparty risk, which alone is attractive. Furthermore, this is a novel idea for Pickle. To my knowledge there is no other project that has done this yet.

There would be a few hurdles to overcome, for example, there isn’t a whole lot of liquidity in the gold tokens right now, and I imagine we would have to work with some of the bigger players in the wider DeFi ecosystem to make this happen. But I suppose the only way is up, and we could incentivise liquidity with pickles.

Current Gold Tokens:
Pax Gold: https://www.paxos.com/paxgold/
Tether Gold: https://gold.tether.to/
Digix Gold: https://digix.global/
Perth Mint Gold: https://pmgt.io/

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The overall concept of this is awesome, but as to whether it makes for a good strategy I couldn’t say … let’s hope so!

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I’ve read tons of threads about this on Curve. They can’t seem to generate enough interest, and it didn’t pass FWIW. I was super interested in it, but it didn’t get traction, YET. Let the fed keep printing money and maybe we’ll address in a couple months :slight_smile:

Including link, because there’s a good analysis of different exposures to gold which are helpful on their own.

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LOVE THIS IDEA!

I’m a fan of gold, and think there is definitely a place for this in the ecosystem… One day gold on the blockchain will be massive, and we can have a chunk of that pie =)