# PAXG Listing Rationale {% hint style="info" %} Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: [254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)). Research Partner: Base58 Labs contributes execution research, systems modeling, and risk design. {% endhint %} The decision to integrate PAX Gold (PAXG) into the BASIS platform reflects a strategic expansion into tokenized hard-asset exposure with distinct market structure, execution behavior, and structural alpha capture potential. This page explains the rationale. *** ## 1. Why Gold? The Macro Case Gold has served as a store of value for centuries. Within a digital asset execution platform, gold introduces a differentiated asset class with market behavior that is not fully synchronized with BTC, ETH, or SOL. ### Key reasons * Low correlation to major crypto assets: Gold pricing is influenced by inflation expectations, interest-rate policy, reserve demand, and geopolitical repricing. This creates diversification in opportunity flow. * Structural inefficiency: The tokenized gold market remains less mature than core crypto derivatives markets, which can result in more persistent pricing dislocations. * Expanding market depth: As tokenized gold adoption grows, liquidity improves across spot venues, settlement rails, and derivatives infrastructure, increasing the addressable set of execution opportunities. {% hint style="success" %} PAXG is live and active on BASIS. Users can deposit native PAXG via a connected Web3 wallet and swap 1:1 into stPAXG for staking. {% endhint %} *** ## 2. Why PAXG and Not XAUT? Both PAXG and XAUT are gold-backed tokens, but they differ meaningfully in issuer structure, transparency, and operational confidence. For BASIS, PAXG provides the stronger fit. | Criterion | PAXG (Paxos) | XAUT (Tether Gold) | | ------------------------ | -------------------------------------------------------------------------------- | ----------------------------------------------------------- | | Regulatory profile | Issued under a more established regulated trust structure | Less institutionally transparent by comparison | | Reserve verification | Regular third-party attestations | Reserve reporting framework differs | | Gold custody disclosures | Clear bar allocation and custody framework | Less granular public bar-level disclosure | | Redemption structure | Established redemption framework through issuer channels | Different minimums and procedures | | Operational transparency | Stronger market perception for transparency and controls | More questions historically around broader issuer structure | | Platform suitability | Better aligned with deterministic risk controls and institutional infrastructure | Less aligned with BASIS listing criteria | For a platform centered on deterministic execution, risk-bounded state transitions, and institutional-grade operating standards, PAXG is the more suitable asset. *** ## 3. Structural Alpha Capture Opportunities Specific to PAXG PAXG introduces several venue and product-specific opportunities that differ from crypto-native assets. ### Core opportunity types * Spot-perpetual basis trading: Cash-and-carry style positioning applied to PAXG-linked derivatives where supported by market structure and funding conditions. * DEX-CEX dislocation capture: Price differences between decentralized liquidity pools and centralized venues. * Cross-exchange spatial arbitrage: Temporary price divergence for PAXG across centralized venues. * Cross-asset relative value: Statistical deviations involving gold-crypto ratios, including BTC/PAXG and ETH/PAXG relationships. * Collateral efficiency strategies: PAXG can participate in broader capital routing frameworks where risk controls and settlement conditions permit. {% hint style="warning" %} BASIS does not expose strategy internals in full detail. Execution logic, routing, and venue selection are governed by proprietary infrastructure designed for execution precision and structural alpha capture. {% endhint %} *** ## 4. Why PAXG Fits the BASIS Architecture PAXG is not listed simply as an additional asset. It is included because it is compatible with the platform's execution and control framework. ### Platform alignment * Deterministic execution paths under constrained state transitions * Math-based allocation logic and bounded risk parameters * State machine risk controls for position lifecycle management * Proprietary routing infrastructure designed for execution precision * BHLE performance characteristics: sub-50μs latency, 100K+ OPS throughput * Research support informed by Base58 Labs, referenced as a Research Partner This makes PAXG suitable not just as a passive store-of-value representation, but as an asset that can be integrated into a controlled, measurable execution environment. *** ## 5. User Handling on BASIS PAXG support on BASIS follows the standard wallet architecture. {% tabs %} {% tab title="Deposit" %} * Go to Dashboard → Assets * Select PAXG * Connect a supported Web3 wallet such as MetaMask * Approve and submit the native PAXG deposit PAXG deposits use connected wallet flow. Unlike BTC, there is no copy-only assigned address flow for PAXG. {% endtab %} {% tab title="Swap" %} * Native PAXG can be swapped only 1:1 into stPAXG * Swap fee: 0.01% * Supported mapping: PAXG → stPAXG only Cross-token swaps are not supported. {% endtab %} {% tab title="Staking" %} * stPAXG is held in the Staking Wallet * Rewards accumulate in real time as stPAXG * Booster options: * 14D: +10% * 30D: +20% * 90D: +50% * 180D: +100% (2×) * Fixed pools can be unstaked only after the lock-up period ends * Unstake is full-position only * Upon unstake, the claimable amount is automatically credited to the Staking Wallet as stPAXG {% endtab %} {% endtabs %} *** ## 6. Operational Parameters | Item | PAXG | | ----------------------- | --------------------------------------------------------- | | Deposit method | Web3 wallet connection | | Depositable asset | Native PAXG only | | Internal staking asset | stPAXG | | Swap ratio | 1:1 only | | Deposit fee | 0% | | Withdrawal fee | 0.05% | | Swap fee | 0.01% | | Typical withdrawal time | 1–6 minutes | | Wallet model | Funding Wallet for native PAXG, Staking Wallet for stPAXG | *** ## 7. Risk Considerations PAXG introduces asset-specific considerations that are managed through the BASIS control framework. ### Primary risks monitored * Peg deviation risk: PAXG can trade at a premium or discount relative to reference gold pricing * Market-hours liquidity variation: Gold-linked liquidity conditions can differ depending on global trading sessions * Venue fragmentation: Tokenized gold markets may show uneven depth across venues * Issuer and regulatory event risk: Changes affecting the issuer can alter trading conditions or availability * Settlement path variability: On-chain and venue-specific transfer conditions can affect timing and execution quality These risks are managed through deterministic controls, exposure thresholds, and state-aware execution logic rather than discretionary intervention. {% hint style="info" %} Trust on BASIS is based on observable process discipline: deterministic execution, mathematical constraints, bounded transitions, and infrastructure designed to reduce operational ambiguity. {% endhint %} *** ## 8. Conclusion PAXG is live on BASIS because it expands the platform into a differentiated, institutionally legible asset class with favorable characteristics for structural alpha capture. Its transparency profile, hard-asset linkage, and compatibility with deterministic risk controls make it a strong fit for the BASIS execution environment. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.basis.pro/paxg-integration/listing-rationale.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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