[ARFC] Onboard PAXGy to Aave V4 Global Dollar Hub

Governance
1

Summary

This proposal seeks to onboard PAXGy to the Global Dollar Hub on the Aave V4 Ethereum instance. Final asset configuration will be determined by the Risk Service Providers.

Motivation

PAXGy is a vault share token issued by Paxos Labs. Holders deposit PAXG into the vault and receive PAXGy in return. The vault is designed to generate a return on the deposited PAXG and to pass that return to holders by letting each PAXGy share redeem for a growing amount of PAXG over time.

Onboarding PAXGy to the Global Dollar Hub would be aligned with the DAO’s long-term objectives in several ways:

  • It extends the Global Dollar Hub’s existing gold exposure through PAXG into a yield-bearing form, giving users a way to earn a return on gold-backed collateral without leaving the Aave ecosystem.
  • It gives users access to a Paxos-administered yield product on top of a regulated, physically-backed gold token, supporting demand from participants seeking commodity exposure with a return component.
  • It complements the Global Dollar Hub’s composition, adding a non-correlated, yield-bearing asset alongside its existing PAXG listing.

Specification

This proposal adds PAXGy to Aave V4 Global Dollar Hub in Ethereum

Token Address: 0x06c03C72fd05b2EA5bA0F283F5f59f7f05FD2573

Risk Parameters and final configuration will be updated by Risk Service Providers and ARFC will be updated accordingly.

Disclaimer

This proposal was prepared by Aave Labs in its capacity as a contributor to the Aave ecosystem. Aave Labs has no financial relationship with Paxos Trust Company or any of its affiliates and has not received compensation from Paxos in connection with this proposal.

Next Steps

  1. Gather community feedback during the ARFC stage.
  2. Service Providers to post Asset Technical Assessment and Asset Risk Assessment.
  3. If the ARFC response is positive, escalate to Snapshot for off-chain confirmation.
  4. Execute the corresponding transaction through the V4 Security Council to onboard PAXGy to the Global Dollar Hub on the Aave V4 Ethereum instance.

Copyright

Copyright and related rights waived via CC0.

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