Proposal: Add support for CACHE Gold (CGT)

CACHE Gold Summary

CACHE Gold tokens are fully regulated, public, transparent, redeemable tokens backed by gold stored in vaults around the world. Each token is backed by one gram of pure, investment grade gold. CACHE Gold is different from other gold backed tokens in several key ways:

  1. Superior transparency: Through the CACHE Gold Explorer , CACHE provides real-time tracking data on all the bars backing CACHE Gold. Tracking data includes location, photograph, serial number, weight, purity, refiner, current valuation and more. Tracking data is provided directly by the vaults that store the gold (Brink’s, Loomis, Dillon Gage IDS and The Safe House).
  2. Superior redemption options: CACHE Gold provides multiple redemption options in multiple regions: vault pickup, shipping, or sale for USD. CACHE also provides significantly smaller 100 gram ($6,250) and 1 kilogram ($62,500) bars than the 400 toz LBMA good delivery bars (~$750,000+) that competing tokens offer for redemption.
  3. Decentralized: Unlike competing tokens, CACHE limits its role to exchanging physical gold for tokens and vice versa. Liquidity, vaulting and exchange are left to reputable industry leading firms. This provides a number of benefits such as eliminating a single point of failure and creating a competitive market place for token holders to sell or ship their redeemed gold. CACHE is designed such that any reputable industry firm (vaults, dealers, retailers, distributors, logistics companies, exchanges, etc.) can participate in and profit from the CACHE Gold ecosystem.
  4. Flexibility: CACHE Gold is backed by pure grams of gold and its asset tracking system GramChain can support any type of gold, regardless of weight or purity, as long as it meets industry standards for investment grade gold. CACHE Gold is currently backed exclusively by 100 gram and 1 kilogram bars, but this may change over time as market demand dictates.
  5. Industry Experience: Unlike other gold backed tokens, CACHE Gold was founded, designed and developed by precious metals and vaulting industry veterans.
  6. Publicly Auditable: A token audit takes about 1 minute to perform for anyone with access to a web browser:

Step 1. Get the number of CACHE Locked gold grams from the CACHE Explorer: 34,301.57 (as of 05-09-2020 ~10:51 UTC)

Step 2. Get the number of unbacked tokens that are locked in the CACHE Unbacked Treasury: 0.0

Step 3. Get the total number of CACHE Gold Tokens (“Total Supply” on Etherscan) ever minted: 34,301.57

Step 4. Calculate CACHE Gold tokens in circulation:

Total Supply (34,301.57) - CACHE Unbacked Treasury (0.0) = 34,301.57

Step 5. Determine if the tokens in circulation are greater than or equal to CACHE Locked gold grams? If so CACHE has passed its token audit. In this case:

34,301.57 CACHE Gold in Circulation <= 34,301.57 Toal CACHE Gold minted (“Total Supply”)

Compare this to the results of a similar exercise on other gold backed tokens.

It would also be trivial for any independent third party to run an automated monitor to ensure full gold backing at all times because all of the relevant data is always public.

All vaults (Brink’s, Loomis, Dillon Gage IDS and The Safe House) that store gold backing CACHE Gold are also independently audited and insured.

Project History

CACHE Private Limited was incorporated in Singapore in August 2018 with the goal of designing and developing a regulated, transparent, freely tradable, fully redeemable gold token that can scale to millions of ounces (billions of dollars USD). CACHE Gold token launched on the Ethereum mainnet on February 21, 2020.

How are CACHE Gold tokens used?

Each CACHE Gold token is backed by one gram of pure investment grade gold. CACHE Gold is used to track the current spot price of gold and is redeemable on demand for physical gold bars or the equivalent value in USD. See this video for more details on what CACHE Gold is used for.

How is CACHE Gold licensed and regulated?

CACHE Private Limited was incorporated in Singapore and is [licensed and regulated by the Singapore Ministry of Law as a precious stones and precious metals dealer.

Where can you trade CACHE Gold?

CACHE Gold is currently traded on centralized (e.g. Bittrex Global) and decentralized (e.g. Uniswap) digital asset exchanges. Redemption orders can be submitted on CACHE’s website 24/7.

Does CACHE Gold have a legal opinion?

Yes we have. CACHE Gold is not a security, financial instrument or digital payment token, it is an asset backed token.

Can CACHE Gold freeze/blacklist addresses or confiscate tokens?

No, this functionality is not part of CACHE Gold’s smart contracts.

Oracle / Data Sources:

The CACHE Explorer provides real-time data for the gold bars backing CACHE Gold. All tracking data is hashed and broadcasted to the Ethereum blockchain to prevent data tampering, manipulation or deletion.

In terms of pricing data, any reliable and reputable oracle or feed for the spot price of gold is suitable. We can also provide our own.

We are happy to answer any additional questions the Aave community has.

We have also recently applied to be added as collateral on Maker DAO.

There are many more relevant links we would have liked to include, but this forum seems to have a limit of 5 links per post.

Thanks for reading.

4 Likes

You may find additional relevant links in our Maker Collateral Onboarding Application.

1 Like

In what circumstances could CGT divert from the gold spot price?

1 Like

If the liquidity is on the exchange runs out on either side it could temporarily diverge but in this case we would work with our third party market makers to add more liquidity as soon as possible. We aim to always have reserve liquidity available and through our partnerships with Dillon Gage, Silver Bullion and Goldheart Bullion we have access to billions of dollars of gold liquidity as needed.

In case the price has temporarily diverged too much on all exchanges you always have the option to redeem for physical gold or USD. The bids to redeem for USD are a competitive market with three independent dealers bidding more and more will be added in the future. The bids are available 24/7 even when the gold markets are closed. The bids are extremely competitive and currently less than 1% under spot.

Lastly there is some liquidity on Uniswap between CGT-PAXG which we plan to add to.

I really like CACHE. I think they have a superior system and integrity. In a world awash with financial uncertainty, CACHE looks to be the cream of the crop! Very transparent. Scalable. Fully backed by gold and very easy for owners to track and redeem their holdings.

I vote yes for gold-backed stablecoin in general, but nay for CGT in particular. If we are going to add one, then liquidity will be essential. Personally, I’m a PAX Gold (PAXG) fan, and feel it could be a good candidate: according to etherscan, PAXG has over 4k addresses, with a ~ $65M market cap…in sharp contrast to CGT’s 75 addresses and $2.7M market cap.

With that said, I did just view your link on the XAUT/PAXG discrepancies. To my point made above, might Digix Gold (DGX) be a better fit than CGT [removing PAXG from consideration, for the sake of discussion]? DGX has over 2k addresses and almost 3x the market cap of CGT.

I think we can both agree that Tether Gold definitely lacks the transparency [much like USDT].

1 Like