Paxos, a crypto brokerage and infrastructure platform, recently announced integration with Chainlink to make use of its DeFi. It will drive the adoption of the US-backed Paxos Stable Standard (PAX) and the PAX Gold Standard (PAXG) in the DeFi ecosystem, a blockchain-based parallel financial system that users can use to buy and sell financial products and assets without intermediaries.
The standard tokens for Paxos (PAX) and Paxos Gold (PAXG) are now available on the Chainlink Oracle Network. Chainlink acts as the background pricing and data infrastructure for many DeFi projects and, according to DeBank, accounts for more than 50% of smart contract calls along the Chainlink.
Increased Adoption of Paxos-Powered Assets
Founded within DeFi, through the successful launch of PAX and PAXG, Paxos provides consumers with online access to token assets fully backed by the US dollar and gold under the protection of a highly regulated company. It is vital to provide the central infrastructure that will support these assets’ adoption under the emerging DeFi protocols, particularly as reliable forms of guarantees and loan derivatives and tradable assets, and reliable forms of payment.
Leveraging the Chainlink infrastructure, PAX, and PAXG pricing issues will deliver smart price chain contracts. They are supported by a decentralized network of verified Oracle nodes and received from off-chain data aggregators supporting volume-adjusted market coverage in all retail environments.
These price issues can be integrated within a day and are resistant to multiple weak points in data manipulation. Besides, impending data issues with Proof of Reserve provide consumers with more options to verify that their respective real-world assets fully support PAX and PAXG.
By creating this oracle network, smart contract developers get access to all external data resources needed to build highly secure financial applications backed by a transparent token guarantee. It allows Paxos to play a more direct role in helping DeFi grow by linking real assets down the chain while maintaining the assurance consumers expect safety, reliability, and transparency.
The Future in Paxos
In an earlier interview, Cascarilla, CEO of Paxos, painted a picture of Paxos’ vision, tokens backed by gold naturally are the way to go.
Given the Paxos proceeds and integrations, it is indeed very logical for them to issue gold tokens. He also mentioned various drawbacks, including limited transaction times and high friction costs in the physical exchange of gold and silver, limiting the physical interaction of gold and gold assets in traditional markets.
Given the extraordinary liquidity, transferability, and availability of token assets in the market all day, Cascarilla believes that token gold and other assets are the future.