Commodity-pegged Stablecoin
A digital asset tied to the value of physical commodities like gold or silver.
What is Commodity-pegged Stablecoin?
Commodity-pegged stablecoins are digital assets backed by tangible assets like gold or silver, offering stability and exposure to commodity markets without physical ownership. Examples include PAX Gold (PAXG) and Tether Gold (XAUT), where each token represents a specific quantity of gold (e.g., one troy ounce) stored in secure vaults. These stablecoins appeal to investors seeking a hedge against inflation or currency volatility, combining blockchain’s transparency with the intrinsic value of commodities, and are used in trading and wealth preservation.
Related Terms
Block Proposer in Ethereum
The validator pseudo-randomly selected to propose and broadcast a new block during a specific 12-second slot in Ethereum's proof-of-stake consensus mechanism.
Preferred Stock
Equity securities with priority over common stock for dividends and assets, used in Strategy's stack for Bitcoin funding.
Ether (ETH)
Ether(ETH) is the native digital asset of the Ethereum blockchain, used to pay for transaction fees and computational services.
Gas Price
The amount of Ether (ETH) a user is willing to pay per unit of gas for a transaction on Ethereum.
Gas Limit of a Transaction
The maximum amount of gas a user is willing to spend on an Ethereum transaction.
Gnosis Safe
A multi-signature smart contract wallet on Ethereum for secure, shared management of digital assets with customizable approval thresholds and recovery options.