CACHE Gold Uses Chainlink Proof of Reserve To Monitor Physical Gold Reserves Backing Tokenized Gold

“Chainlink provides CACHE Gold with the secure and reliable infrastructure needed to help us maintain our commitment to real-time transparency over the physical gold backing CGT tokens.”
Brian Hankey

Co-Founder, CACHE Gold

Key results

100%
automated verification
1
integration that supports multi-chain expansion
100%
oracle uptime

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.

Situation

Challenge

CACHE Gold needed a way to verify in real-time the physical gold backing CGT and help prevent the minting of unbacked tokens.

Solution

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.

Business Outcomes

 CACHE Gold can provide its users with unparalleled transparency into the physical gold reserves backing CGT.

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Challenge

CACHE Gold Needed a Way to Transparently Verify Off-Chain Asset Reserves

  • CACHE Gold needed a way to verify off-chain gold reserves for its users.
  • The minting of unbacked CGT could have cascading effects across DeFi.
  • Existing auditing solutions can be lengthy and cost-intensive.

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

Brian Hankey
Co-Founder, CACHE Gold

Solution

CACHE Gold Integrated Chainlink PoR To Help Monitor the Gold Reserves Backing Its Tokenized Gold Product

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

Brian Hankey
Co-Founder, CACHE Gold

Business Outcomes

CACHE Gold Can Provide Its Users With Higher Assurances Regarding the Backing of CGT

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.

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