TGLD's model relies on LeoStrategy's revenue from market-making and products to fund daily yields (3-20% APR baseline, up to 32% with boosts), with excess profits buying and perma-staking LEO for over-collateralization. This peg policy incentivizes buying during deviations to restore 1:100 GLD alignment, but sustainability hinges on consistent profits and LEO's long-term growth (projected 100%+ yearly). If revenues falter or LEO underperforms, yields could strain or fail, though onchain transparency and liquidation preferences (paying GLD ratio on dissolution) mitigate some downside.
Risk grade: 6/10. Moderate due to DeFi volatility, dependency on internal ops, and no physical gold redemption—stronger than pure speculation but weaker than TradFi gold ETFs. For details: Tokenized Gold (TGLD) Documentation.
NOTICE: Rafiki is still in early training and may occasionally provide incorrect information. Please report errors using #feedback