PR with Payload:
RWA toolkit for Gold and Silver on Balancer.
Summary:
Aurus provides the tech infrastructure for Web3 businesses to secure their protocols, treasuries, products and token economics with stable, real-world value, in the form of tokenized Gold and Silver.
Our vision is to become “The Value Layer of Web3” - innovating with RWA’s in Defi, Gaming and Digital Collectibles.
Aurus takes a decentralized approach, as we only partner with trusted precious metal providers. The Aurus Foundation performs KYC / KYB / AML - to ensure that only verified actors can provide the highest quality metals to the Aurus ecosystem. These metals are verified, audited and stored with top tier 3rd party custodians, in locations like: London, Zurich, Madrid.
The below pools are intended to be the primary source of liquidity for the Aurus ecosystem and subsequent RWA Alliance partners, driving the majority of traded volume to Balancer.
References/Useful links:
Pools:
TXAU:USDC
Balancer
TXAG:USDC
Balancer
TXAU:TXAG:WETH
Balancer
TXAU:USDC Polygon Root Gauge: PolygonRootGauge | Address 0xccDDC6cbBB003741EAC7A6635d7f3705c5bA6Bd1 | Etherscan
TXAG:USDC Polygon Root Gauge:
PolygonRootGauge | Address 0xa532f5AAFB0B268D873443d621521ee0EEb8a6d3 | Etherscan
TXAU:TXAG:WETH Polygon Root Gauge:
PolygonRootGauge | Address 0xDa993d62510043602DE20487E8ff409552724f0C | Etherscan
Website: https://aurus.io/
Twitter: x.com
Deposit/Withdraw/Swap: Xave: https://app.xave.finance/#/pool/
(switch to Polygon network)
Protocol Description:
Xave Finance (pronounced “Save Finance”) is scaling stablecoin markets (any kind of stablecoin backed by currencies, commodities, on-chain synthetic, anything tokenized or tracking market pricing from off chain etc) by building its’ “FXPool” used by stablecoin issuer partners Aurus (http://aurus.io/), StraitsX (https://straitsx.com/), Stasis (https://stasis.net/), Circle (https://circle.com/), VNX (https://vnx.io/), and others covering EUR, CHF, Gold, Silver, USD, SGD, IDR, BRL and more.
Motivation:
The Aurus Foundation is registered in the UK and received legal passing via direct & ongoing consultation with the FCA on all Aurus tokens. The Foundation facilitates the tokenization of tGOLD ($TXAU) and tSILVER ($TXAG) commodity tokens, on behalf of precious metal providers, like Gold Refineries. One such partner is Sempsa JP refinery in Spain, which has been operating for more than 100 years and is part of the broader Heimerle Meule Group of companies.
Aurus, Sempsa JP refinery & Xave Finance are together pioneering an alliance of liquidity partners in web3, particularly focused on Real World Assets. The RWA Liquidity Alliance will enable many top projects and companies to acquire tGOLD and tSILVER to diversify their treasuries. In order to join the Alliance, members need to first add a minimum of 50% of their tGOLD &/or tSILVER paired with USDC as LP on Xave / Balancer. Alliance members then qualify to redeem or sell their metals directly with Sempsa refinery too, via a White Glove service. This provides another source of “off-chain” liquidity for them, which should encourage “stickier liquidity” on-chain for the long term.
Together we will be helping to build further use cases for this pool to enable liquid Gold and Silver FX trades globally. Aurus is developing a use case for Gold-backed digital collectibles, where the FXPools will benefit, as the tGOLD tokens used to “back/collateralise” the collectibles will be sourced from the pools.
There is a high probability that the RWA narrative continues to gather strength too, which will provide further opportunities and should lead to increased demand. Xave and Aurus are also currently developing partnerships with key distribution partners in India and Turkey, two countries with extremely high demand for Gold. This would connect their users / traders directly to the tGOLD & tSILVER FXPools, driving further volume.
These real world use cases will bring sustainable fee generation via real economic activity to the DAO. Xave and Aurus would like to work with the community to incentivize the TXAU:USDC & TXAG:USDC Polygon FXPools, as well as the TXAU:TXAG:WETH Polygon pool with BAL rewards. Working together to build more real world use cases and further growth and distribution of Gold & Silver in DeFi.
Furthermore, Aurus is in talks with all RWA partners to create new pairs with their own project tokens and pair them with TXAU, as well as provide allocations of their own tokens for future LP incentives on Xave / Balancer. With the help of BAL rewards, we aim to scale to $1M TVL in each pool through onboarding new alliance members and through community members of all projects and Aurus partners. With a total target of $3M TVL over the next 6-12 months.
Specifications:
-
Governance:
Governance will be done via snapshot for now. Later on Xave’s own VE governance structure will be deployed (forked from veBAL). Current admin of the TXAU:USDC & TXAG:USDC Polygon FXPools is the team’s ops 2/3 multisig 0xC76Ec28801ad09020fB89da48306176e56960CC5 (Polygon), until the community is ready to take on ownership of the Xave protocol.
The TXAU:TXAG:WETH Polygon pool is deployed directly on Balancer v2. -
Oracles:
The TXAU:USDC & TXAG:USDC FXPools utilise a Chainlink oracle to allow FX accurate swaps for a predetermined range of the bonding curve. Beyond this range (called the “beta region”), LP ratio then dictates the price of trades. At this point, arbitrageurs are incentivized by significantly cheaper fees to trade the pool back to the “beta region” where FX price is followed. LPs are also incentivized to keep liquidity in the pool especially while it is outside the “beta region”, due to existing parameters that yield much higher fees charged to traders swapping the pool away from the “beta region”.
The TXAU:TXAG:WETH Polygon pool does not use oracles as it is deployed directly on Balancer v2. -
Audits:
v2 Final Audit - Xave Finance -
Centralization vectors:
2/3 operations multisig that owns contracts until contracts are “battle tested” and community is ready to takeover -
Tokens:
The Aurus Foundation, registered in the UK and received legal passing via direct & ongoing consultation with the FCA, facilitates the tokenization of tGOLD ($TXAU) and tSILVER ($TXAG) commodity tokens, on behalf of precious metal providers, like Gold Refineries. Each token is backed 1:1 with fully allocated LBMA Gold or Silver. Where each metal token equals 1 gram of the underlying physical metal. -
Value:
The pools consist of the tGOLD ($TXAU) and tSILVER ($TXAG) commodity tokens, where tokenization is facilitated by the Aurus Foundation, on behalf of regulated precious metals providers like Sempsa JP refinery. Who will concentrate liquidity for real world use cases dependent on capital efficient on-chain FX, to support the multiple use cases for Gold and Silver across web3, as discussed above.
These pools are intended to be the primary source of liquidity for the Aurus ecosystem and subsequent Alliance partners, routing all trades via these pools, and hence the majority of traded volume.
Technical Specification
Transaction: The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0xccDDC6cbBB003741EAC7A6635d7f3705c5bA6Bd1
gaugeType(string): Polygon
gauge(address): 0xa532f5AAFB0B268D873443d621521ee0EEb8a6d3
gaugeType(string): Polygon
gauge(address): 0xDa993d62510043602DE20487E8ff409552724f0C
gaugeType(string): Polygon