GLP should hedge with gold. This can be done purchasing PAXG. Each PAXG token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults.
We propose to replace the UNI and LINK allocations (~3.3%) with PAXG.
I think this is a great idea. Would even add it to the Avalanche GLP.
I‘m against that proposal.
One of the main questions that we should ask ourself when adding something to GLP is, if it will create revenue (for swapping etc.).
I don’t know the data but I‘m pretty positive that PAXG is not a highly traded coin so it would actually drive revenue down if we decided to add it.
The hedging argument is a secondary one and as far as I know, economic research is showing conflicting results in regards to if gold is even a good hedge for most use cases.
This.
Again, like your proposal on USDP, the same issues, it’s good for GLP stakers, but if it’s not being traded on/has lots of volume, I don’t think it’s wise to add it.
great ideas , I personally don’t want any exposure to uni and link as GLP holder. the selling point of glp is like the tricrypto pool with higher apr
So wanted to share that I have been looking at the feasibility of this idea, including trying to engage both Paxos (PAXG) and Tether (XAUT), both of which have verifiable segregated gold reserves.
The issue currently is that neither of them are present on Arbitrum or Avalanche. The Avalanche team has been assisting in the outreach as well but without much luck.
Definitely a great first asset that could be held in GLP that isn’t purely crypto native, and which would likely have demand for trading and swapping.