gAssets

Introduction

XAU Digital is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to one troy fine ounce of gold on a Good Delivery gold bar. XAU Digital can be held in cryptocurrency wallets or within platforms, and will also be supported on Ethereum and other popular blockchains.

XAU Digital is easy to generate, access, and use. Users will be able to generate XAU Digital by depositing collateral assets into XAU Vaults within the XAU Protocol commencing from November 1 2021. This is how XAU Digital will be entered into circulation and how users gain access to liquidity. Others will be able to obtain XAU Digital by buying it from brokers or exchanges, or simply by receiving it as a means of payment.

Once generated, bought, or received, XAU Digital can be used in the same manner as any other cryptocurrency: it can be sent to others, used as payments for goods and services, and even held as savings through a feature of the XAU Protocol to be announced to the community. By default, XAU Digital is a Safe-Haven Digital Asset for Everyone.

Users holding GRN tokens can participate in proposals and have rights to decisions on the XAU Protocol. The XAU Protocol contracts adopts a completely fair distribution system without private placements or pre-minings.

Every XAU Digital in circulation will be directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the XAU Digital debt, and all XAU Digital transactions will be publicly viewable on the Ethereum blockchain.

What Properties of XAU Digital Function Similarly to Money?

Generally, money has four functions:

  1. A store of value

  2. A medium of exchange

  3. A unit of account

  4. A standard of deferred payment

XAU Digital has properties and use cases designed to serve these functions.

XAU Digital as a Medium of Exchange

A medium of exchange is anything that represents a standard of value and is used to facilitate the sale, purchase, or exchange (trade) of goods or services. XAU Digital will be used around the world for all types of transactional purposes.

XAU Digital as a Unit of Account

A unit of account is a standardized measurement of value used to price goods and services (e.g., USD, EUR, YEN). Currently, XAU Digital has a target price of one troy fine ounce of gold on a Good Delivery gold bar. (1 XAU = 1,899.70 USD as at 1 PM GMT, 17th October, 2020 ). While XAU Digital will not be used as a standard measurement of value in the off-chain world, it functions as a unit of account within the XAU Protocol and some blockchain DApps, whereby the XAU Protocol accounting or pricing of DApp services is in XAU Digital rather than a fiat currency like USD.

XAU Digital as a Standard of Deferred Payment

XAU Digital will be used to settle debts within the XAU Protocol (e.g., users use XAU Digital to pay the stability fee and close their Vaults). This benefit separates XAU Digital from other stablecoins.

Collateral Assets

XAU Digital will be generated, backed, and kept stable through collateral assets that are deposited into XAU Vaults on the XAU Protocol. A collateral asset is a digital asset that GRN token holders have voted to accept into the Protocol.

To generate XAU Digital, the XAU Protocol will accept as collateral any Ethereum-based asset that has been approved by GRN token holders. GRN token holders must also approve specific, corresponding Risk Parameters for each accepted collateral (e.g. More stable assets might get more lenient Risk Parameters, while more risky assets could get stricter Risk Parameters.) These and other decisions of GRN token holders will be made through the XAU decentralized governance process.