I have to admit, I have been a skeptic of the @leostrategy tokens for a while. When I first saw it, felt like another money grab. I am very much a “real assets, real yield” kind of investor these days and don't risk much outside of blue chip coins. But TGLD caught my attention in a way the other tokens haven't yet. Something about it sparked my gold bug instincts while still appealing to my love for steady, small-yielding income. Plus I have been trying to find a great place to put some mining rewards to work, keep a good safe value that is not the dollar, and earn me some yield.
Putting Mining Rewards to Work
I have been mining DOGE with my partially solar-powered ASIC rigs, and I have been thinking about how to put those small, steady rewards to work. Until now, I have been just moving into BTC every 100 DOGE I mine. But that changes on Monday. With TGLD launching Monday, I am excited to take my weekly DOGE rewards, along with other token and post rewards from Hive Engine and Tribaldex, and convert them into TGLD. The appeal is not just owning tokenized gold exposure. It is about putting it to work. The interest mechanism built into the peg pays out in HBD on Hive or USDC on the BASE chain, and there is an option to compound more TGLD if I want. I am considering going to the BASE chain, but for now, I'll stick to Hive-Engine. But, that kind of flexibility is perfect for someone looking for yield beyond the usual staking or lending platforms.
Understanding the Peg Mechanism
Let me be clear. TGLD is not backed by physical gold nor backed by GLD shares from what I can see. It is PEGGED to GLD, the gold ETF, which itself does not guarantee physical ownership of gold for every share. This is apparently the same thing they are doing with their $TTSLA token as well, but I honestly haven't dug into it enough to speak on it.
What is in place is a pegging mechanism that keeps TGLD at one 1/100 the price of GLD, similar to how a central bank manages currency. That is a big difference from owning actual gold, and it is something anyone considering TGLD should understand. It's kind of like how Hive debt is used to hold the dollar peg for HBD. At least that's how my brain interprets it. There is counterparty risk which is LeoStrategy and the different second layer systems it's built on, and the mechanics depend on the system functioning properly. If something breaks in the peg or the flywheel strategy, the token could deviate from its intended value. So as long as you understand those risks, then you can make your own informed decisions on what to do with your assets, because this ain't financial advice, Boo Boo.
Potential Risks and Flaws
There are other potential issues to keep in mind. The interest rate is not guaranteed long term. It depends on the flywheel and the mechanics behind it. If the system’s revenue from the underlying strategy falters, the payout could fluctuate or even disappear. Transparency is also a concern. The strategy is explained, but it is not fully clear exactly how the peg and yield generation are sustained at a technical level. That means it requires some faith in the system. These are things anyone looking at TGLD should be aware of. So far everything with the other assets seems to work from what I see in Threads on in posts, so they are doing something right.
My Plan With TGLD
Even with the risks, I like what TGLD offers. It allows me to put small amounts of my mining rewards into something that mirrors gold, without having to physically buy, store, and insure bars. It also lets me earn a little yield along the way. My plan is simple. Every week, I will take my DOGE and Hive rewards, swap them into SWAP.HIVE, and funnel them into TGLD. Over time, that approach builds exposure and income passively. I am going to start on Hive-Engine, but may end up bridging over to BASE at some point as I am thinking of moving my Aave funds over there as well from Polygon.
Why I Am Excited
There are risks, and TGLD is not a replacement for real gold in a safe or an ETF. But for someone like me who wants to get on-chain gold exposure while still earning yield, it is exciting. I am looking forward to seeing how the peg mechanism works in practice, how the payouts behave, and whether this can become a core part of my strategy from here on. At the very least, it is a new way to interact with crypto and precious metals in a space that is evolving quickly, and that is something I am genuinely interested in exploring. But at the same time, I will always keep my risk management skeptic hat on to watch for fallouts. Been rugged too many times in this space, but I don't feel like the LEO team is one to do that. That's why I am still here in the first place.
So until next time... Watch out for the launch of TGLD on Monday!
Be cool, be real, and always abide with your stacks!
Posted Using INLEO
Thank you for the write-up! TGLD is the 2nd RWA launched through our launchpad. We're excited to put Tokenized Gold onto the big stage 🦁
Excited to see it in action!
This DOGE
Is it the main doge or the one on hive Blockchain??
I mine merge mine DOGE and LTC on small ASICs. So this would be fresh DOGE I would be sending to tribaldex and swapping for TGLD