CACHE Gold Token (CGT) is a fully backed, redeemable, and regulated tokenized gold asset, where one CGT represents one pure gram of gold stored in vaults around the world. The circulating supply of CGT is kept synchronized with the underlying physical gold supply of CACHE using an interface called the CACHE Token Governor. The CACHE Token Governor ensures that the number of tokens in circulation never exceeds the amount of physical gold locked, and is tracked by asset tracking platform GramChain.
CACHE Gold needed a way to verify in real-time the physical gold backing CGT and help prevent the minting of unbacked tokens.
Chainlink PoR provides real-time on-chain verification to help ensure that the CGT supply is minted based upon the quantity of off-chain reserves.
CACHE Gold can provide its users with unparalleled transparency into the physical gold reserves backing CGT.
CACHE Gold needed a decentralized, automated verification solution to help consistently ensure that the circulating supply of CGT reflects the supply of physical gold in reserves. The solution could not require manual input and needed to be secure against potential tampering in the transmission of data on-chain.
If the physical gold reserves changed beyond a certain threshold, the verification solution needed to relay the change on-chain to update the smart contract handling the synchronization of the off-chain gold reserves and the on-chain CGT supply.
“Chainlink Proof of Reserve has enabled us to bring increased transparency to our platform.”
Brian Hankey
Co-Founder, CACHE Gold
CACHE Gold is using a Chainlink PoR feed on Ethereum to monitor the locked gold backing CGT. Through an automated workflow supported by Chainlink Automation, the amount of gold held in reserves is continually updated on-chain based on changes reported by GramChain.
Crucially, the PoR feed also helps control the ability to mint new tokens based on the quantity of off-chain reserves. When the off-chain gold supply would be less than the outstanding supply of CGT after minting, the smart contract halts minting. When the off-chain gold supply would be greater than the outstanding supply of CGT after minting, the smart contract permits minting. By integrating Chainlink PoR, CACHE Gold can provide its users with stronger assurances that no unbacked CGT can be minted.
“Integrating Chainlink services has been an outstanding experience and we would highly recommend Chainlink to other DeFi projects looking for state-of-the-art oracle technology.”
Brian Hankey
Co-Founder, CACHE Gold
Thanks to the integration of Chainlink PoR, CACHE Gold was able to introduce unparalleled transparency into the physical gold reserves backing CGT, helping the tokenized gold product become an even more trusted asset within the DeFi ecosystem. As users have additional public proof of CGT’s collateralization, they can use CGT more confidently as a reliable gold-backed asset or as collateral within DeFi.
In addition, thanks to Chainlink’s blockchain-agnostic infrastructure, CACHE Gold can also seamlessly expand across the multi-chain ecosystem in the future and use PoR to verify cross-chain asset reserves.
