[ARC] Add VNXAU to AAVE v3 Ethereum

This proposal is to add VNX Gold (VNXAU) to Aave v3 on Ethereum mainnet.


Project - https://vnx.li

Whitepaper - https://vnx.li/wp-content/uploads/2022/03/VNX-Gold-Whitepaper.pdf

Coinmarketcap: VNX Gold price today, VNXAU to USD live, marketcap and chart | CoinMarketCap

Current VNX licenses can be found in the regulator’s registry at this link: FMA - Banken und Wertpapierfirmen


This is a proposal to add tokenized physical gold - VNX Gold (VNXAU) to the Aave protocol on Ethereum mainnet. VNXAU is an ERC-20 compliant token on Ethereum representing direct ownership of physical gold.


VNXAU is a tokenized physical gold launched by a regulated Liechtenstein company to bring traditional liquid assets into DeFi and create next generation finance.

Physical gold is a major reserve asset, has great liquidity, and its global inventory exceeds 200 thousand tons. There is a significant demand for gold-based financial products. In addition, gold is an effective collateral with great potential for liquidity inflows from European private and institutional investors.


1. What is the link between the author of the AIP and the Asset?

@Fig is the COO of VNX

2. Provide a brief high-level overview of the project and the token

VNX Gold is an ERC-20 compliant token on Ethereum representing direct ownership of physical gold that is certified by the London Bullion Market Association (LBMA). Each bar is stamped by its own serial number and linked to VNX Gold tokens, which you can buy, sell, or transfer at your convenience. Since VNX Gold tokens are linked to an actual physical piece of gold, they offer the same benefits as gold, such as the store of value, protection against volatility and inflation, and high liquidity – with complete digital convenience and freedom. The gold is physically stored in a segregated storage in a high-security vault in Liechtenstein – stable economy, highest S&P AAA rating, member of EEA.

VNXAU token generation and all services linked to the tokens are carried out by VNX Commodities AG, a company registered with the Liechtenstein Financial Market Authority (FMA) under the Tokens and TT Services Providers Law (TVTG).

3. Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

Gold is one of the main reserve assets of countries, funds and private investors. Gold reserves exceed 200 thousand tons, i.e. $11T. The development of decentralized finance will provide investors with additional investment opportunities for physical gold in their portfolios through a regulated instrument such as VNX Gold, and AAVE, in turn, will increase TVL. The integration of VNXAU will allow those who have physical gold in Europe or want to invest in it to borrow against their gold while continuing to reap the benefits of owning it.

The introduction of VNX Gold into the Aave ecosystem could bring a new wave of traditional finance users, bringing more conservative and institutional capital. Many of these new customers could become regular users of the Aave protocol.

4. Provide a brief history of the project and the different components: DAO, is it live? Products, are they live? How did it overcome some of the challenges it faced?

2019 - 2020:

  • A team is formed.
  • Seed Round €5.5M done.
  • Grant of €2.2M has been received from the Luxembourg Ministry of Finance.


  • Business model assessed by independent law firm and submitted to the regulator.
  • Operating company incorporated in Liechtenstein.
  • FMA positively assessed the business mode.l
  • Partnered with vault in Liechtenstein.
  • VNX received license in Liechtenstein. VNX Commodities AG is registered under TVTG as TT Service Provider with the Financial Market Authority Liechtenstein (Finanzmarktaufsicht,Liechtenstein), namely as Token Generator, TT Exchange Service Provider, TT Token Depository,TT Key Depository and TT Identity Service Provider

2022 H1:

  • VNX Commodities platform for tokenization of precious metals launched.
  • VNX Gold token launched.
  • Bridge Round €1.5M done, lead investor - Woori Capital, early stage investor in UpBit.
  • Creation of DEX pools and launching staking dApp.

2022 H2:

  • Listing of VNX Gold on Emirex and Lbank crypto exchanges.
  • Launch of VNX Gold on Q blockchain.
  • Listed on CMC.
  • Listed on CoinGecko.

5. How is the asset currently used?

VNX Gold combines the reliability of physical gold in one of the most secure vaults in Europe with the flexibility of crypto-assets. VNXAU is currently traded on LBank, Emirex, Uniswap and VNX Platform.

6. Emission schedule

There is no emissions schedule.

8. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

Market capitalization: $394K 5 (Total existing supply * price)

Average daily volume on the 30 last days: $376K

VNXAU is currently listed on VNX Platform, LBank, Emirex, Uniswap v3.

9. Social channels data (Size of communities, activity on Github)

Twitter: https://twitter.com/VNX_Platform

Hello @VNX and thanks for this proposal following the governance standard. Here are a few thoughts:

  1. V3 is not live yet on mainnet, but that’s just a short-term blocker.
  2. Considering this asset’s current liquidity and volume, setting up a Chainlink price feed might be difficult. A price feed is mandatory to onboard Aave.
  3. Considering liquidity and volume, this asset doesn’t seem fit to be used as collateral, even with supply and borrow caps. The on-chain usage of these assets to be borrowed (on-chain gold short) is unlikely based on historical user behavior on Aave.

That’s why the ACI considers this ARC a bit early to be considered, and encourages VNX to relaunch a proposal when the asset achieves more adoption and volume.

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