[PAXG] - PAX Gold MIP6 collateral application
This is a MIP6 Proposal for the addition of Paxos’ tokenized gold to MCD.
PAXG is a standard erc20 token with approximately $43 million market cap compared to dgx market cap of around $6.5 million.
there is a previous discussion thread here for context: [PAXG] - PAX Gold as MCD collateral
1. Who is the interested party for this collateral application?
A member of the makerdao community. Perhaps the makerdao community in general is interested as PAXG is a high market cap, low volatility token which represents a well established asset, namely gold, to help stabilize the dai peg and collateralization levels in the maker ecosystem.
2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
PAX Gold (PAXG) is an erc20 token. Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company.
3. Provide a brief history of the project.
Since its founding in 2012, Paxos has always sought to enable the movement of assets, starting with the launch of the itBit exchange in Singapore. In 2015, the New York State Department of Financial Services granted Paxos a limited-purpose trust charter, thus establishing it as the first company approved and regulated to offer crypto products and services. By seeking the highest forms of regulation and compliance, Paxos has distinguished itself within the blockchain industry and earned the trust of discerning institutional and individual investors.
Paxos has since continued to operate within established regulatory frameworks while creating innovative new products. This includes workstreams in the tokenization of securities, precious metals and commodities, such as the Paxos Standard token, a digital dollar launched in 2018.
Along the way, Paxos has raised over $93M in venture funding, added distinguished luminaries including Sheila Bair and Senator Bill Bradley to the board, and grown to 110 employees in three global offices.
4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
white paper: https://www.paxos.com/wp-content/uploads/2019/09/PAX-Gold-Whitepaper.pdf
APIs: https://www.paxos.com/apis/
5. Link any available audits of the project. Both procedural and smart contract focused audits.
audit FAQ: https://www.paxos.com/is-paxos-audited/
attestation reports link: https://www.paxos.com/
6. Link to any active communities relating to your project.
paxos is not decentralized/community driven, but has a blog: https://www.paxos.com/blog/
7. How is the applying collateral type currently used?
collateral is used as a cryptocurrency representation of gold which is redeemable for 400 oz gold bars directly through PAX (in 400 token increments) or for smaller amounts through a network of physical gold retailers around the world
8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
Yes, PAX has headquarters in New York City, Singapore, and London
9. Where does exchange for the asset occur?
Kraken is the largest exchange for PAXG at the moment, although there is also some volume on other exchanges as well as a uniswap pair (with minimal volume): https://www.coingecko.com/en/coins/pax-gold#markets
The rest of these questions should be answered by @ilan or someone else who is better positioned to answer them than me:
- (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
- (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
- (Optional) List any possible oracle data sources for the proposed Collateral type.
- (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.
