Tokenized Gold (XAUt0)
Gold has always been the ultimate store of value, a role that remains highly relevant for modern investors. This fundamental stability forms the bedrock of XAUt0. Tokenization of gold brings stability into the digital age. Each XAUt0 token is 1:1 backed by a uniquely identifiable gold bullion bar meeting LBMA “London Good Delivery” standards and held in a Swiss vault.
Unlike traditional gold, XAUt0 is tradable 24/7, making it highly relevant for digital-native investors and seamlessly usable in modern DeFi markets.
Why XAUt0? Key Benefits
XAUt0 combines gold’s timeless stability with blockchain-native advantages:
Accessibility: Gold exposure, now available anytime and anywhere, far beyond the limitations of traditional markets.
Programmability: As an omnichain fungible token, XAUt0 integrates directly with DeFi protocols for use as collateral, lending, or yield strategies across chains.
Transparency: Tether provides quarterly reserve reports, with independent audits (BDO Italia S.p.A.) verifying strict 1:1 backing. Gold reserves are legally segregated assets of token holders, not Tether liabilities.
In short, XAUt0 transforms gold from a static asset into a dynamic instrument for DeFi, combining wealth preservation with new yield opportunities.
Pricing and Risk Management
XAUt0 is integrated into both Basic and Advanced Markets as a collateral and borrowable asset. As an OFT token natively deployable on TON, its smart contract is governed by Tether’s 3-of-6 multisig - same structure already accepted for USDT.
Pricing relies on the Redstone XAU/USD oracle, which reflects institutional gold benchmarks. This setup smooths out temporary volatility from continuous crypto trading, particularly during weekends when the London Bullion Market is closed. Historically, deviations have ranged between ±3% and up to 4.5%, typically resolving within one to two days.
Upside deviations simply lower collateral efficiency and do not create systemic risk. Downside deviations could pose under-collateralization risk, but conservative parameters provide a robust buffer well beyond historical gold volatility.
Affluent has set a risk factor of 15% for XAUt0, reflecting price volatility and liquidity conditions across DEXs and CEXs. Accordingly, target LTV ratios are capped: up to 66% for USDT and 57% for TON in Basic Markets, and 75% and 67% respectively in Advanced Markets. Even accounting for weekend price gaps, the buffer remains sufficient.
The Next Step: Gold Multiply Vault
Gold has always been a reliable store of value, but it has never generated yield. The Gold Multiply Vault changes that. By maintaining exposure to physical gold while deploying strategies like lending and tsTON looping, investors can now turn gold into a yield-bearing asset.
This makes gold not only a stable hedge, but also a productive instrument within DeFi, allowing users to hold gold and earn yield simultaneously, without sacrificing its fundamental security.
Affluent.
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