PAXG as FiRM collateral
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PAXG is backed 1:1 by gold, offering a stable store of value.
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Could diversify Monolith’s collateral portfolio and attract users seeking commodity-backed exposure.
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Challenge: If gold rises sharply, collateral ratios might trigger liquidations even when positions are strong in real terms.
2. Gold-pegged stablecoin
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Provides a hedge against fiat inflation.
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Edge case: rising gold could cause liquidations unless the system adjusts for price appreciation.
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Possible solution: dynamic collateral ratios or special rules for commodity-backed assets.
Discussion:
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Would the community support PAXG collateral or a gold-backed stable?
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How can the protocol handle rising gold without unnecessary liquidations?
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Other assets or mechanisms for stable, real-world value exposure?
My take:
PAXG as collateral seems like a smart diversification move, while a gold-backed stable could be attractive if the protocol carefully handles price appreciation. This could be a unique bridge between crypto and real-world value.
