Liquidity
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XRBG, as a gold-ownership product, was initially launched as a digital asset with the primary objective of being a physical gold redemption-first solution. This approach aligns with the specific needs of private and institutional investors who advised us in the development of this product, seeking a mechanism where gold ownership could be legally and immutably represented by a token.
While providing DeFi liquidity via decentralized exchanges like Uniswap is not essential for the majority of our existing clientele—who primarily opt for and prefer physical gold redemptions—XRB DAO, in collaboration with liquidity providers, aims to supply liquidity through Uniswap V3 to accommodate the broader retail gold investor market.
Our goal is to ensure that DeFi market participants who wish to enter or exit a position on gold via XRBG on Uniswap can do so seamlessly, using stablecoins in a decentralized and accessible manner.
At any moment, various XRBG/USDC liquidity pools may be live on Uniswap V3, available on both the and networks. Any available liquidity provided is not intended for large-scale trading unless specifically communicated by XRB Gold. Rather, it serves to offer an essential feature: price visibility. This enables token holders to view the market value of one fine gram of gold directly in their self-custody digital wallets outside of the XRB Gold app.
As we continue to redeem tokens for clients, we will actively rebalance the liquidity pools to ensure that the spot price of one fine gram of gold is accurately reflected across both networks. This enhances the holder’s experience by providing real-time insight into the value of their tokens without the need for external calculations.
As demand for XRBG outside institutional networks increases and more liquidity is introduced by liquidity providers, market dynamics will naturally align the pool's price with the global market price of gold. Consistent market activity will ensure accurate price discovery, with liquidity pool prices adjusting to reflect the latest market information and conditions.
While there may occasionally be discrepancies between liquidity pool prices and the global market price for gold, each XRBG token unequivocally represents ownership of one gram of fine gold, and is always fully redeemable 1-to-1 for physical gold, regardless of the posted price on any indexes or pools.
This ensures that liquidity is always available, as three times the amount of gold is held in reserve for every XRBG token issued.