there are two main ways to earn more > 3% APY on tokenized gold rn
- onchain yield source:
collateralize popular tokenized gold (PAXG or XAUt) in @0xfluid where it’s used as liquidity for trading and lending. the whole process is transparent and fully onchain
main risks: systemic risk of the protocol itself (operating 3y+ without hacks) + custodial risk from paxos or tether
- offchain yield source:
lock @orogoldapp tokenized gold ($GOLD) for about a year. it’s then lent out to jewelers or institutions that need real-world gold, in exchange for collateral or credit.
then the interest from those loans is paid back to you
main risks: low transparency, potential bad debt from offchain borrowers + custodial risk from oro
which option to choose is up to you!
both make gold yield-bearing but through different strategies
Now Gold collateral on Fluid is earning 6.3% APR while borrowing USDC is at 6.1%.
You are literally getting paid to borrow against your gold on Fluid!
Smart gold 🪙🌊

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