Arbitrage Modules
Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles-incorporated entity (LEI: 254900IX2F2KCWNSSS64).
Currency convention: All amounts are displayed in USDT as an internal USD-equivalent accounting unit. USDT is not a depositable or withdrawable asset on BASIS. PAXG deposits and withdrawals are handled in native token form through a connected Web3 wallet. See Risk Disclosure.
This section documents how PAXG is used inside BASIS. The purpose is to define active modules, eligibility conditions, risk sources, and required control layers. It does not constitute a promise of returns.
Module Overview
1
Golden BASIS (Spot-Perp)
Capture funding and basis differentials while minimizing directional exposure through deterministic hedging logic.
Active
Low-Medium
2
RWA Liquidity Arb (DEX-CEX)
Capture short-term pricing dislocations between on-chain pools and centralized venues using structural alpha capture.
Active
Medium
3
Collateral Yield Optimization
Use PAXG as conservative collateral in vetted lending environments to improve capital efficiency.
Active
Medium
4
Peg Deviation Monitor
Measure peg stress, liquidity fragmentation, and venue dispersion. Execute only when strict expected-value gates and execution precision conditions are satisfied.
Active
Low (Monitoring)
How the Modules Work Together
The four modules operate as an integrated system.
Module 4, Peg Deviation Monitor, functions as a safety layer for the other modules. It continuously monitors the PAXG price relative to reference gold pricing and triggers protective actions when deviation, spread instability, or liquidity deterioration exceed permitted thresholds.
Modules 1 and 2 are the primary structural alpha engines.
Module 1 captures funding-rate and basis differentials when PAXG perpetual markets trade away from spot reference levels while maintaining constrained directional exposure.
Module 2 captures cross-venue price discrepancies caused by fragmented liquidity between decentralized venues and centralized exchanges.
Module 3 is a capital-efficiency layer. Capital not actively allocated to Modules 1 and 2 may be routed into vetted lending environments where risk constraints, collateral parameters, and withdrawal conditions remain within BASIS control tolerances.
PAXG support is live on BASIS.
Deposit asset: PAXG
Deposit method: connect a Web3 wallet such as MetaMask
Swap path: PAXG ↔ stPAXG only, 1:1
Rewards accrue in real time as stPAXG in the Staking Wallet
Unstake is full-position only after the selected lock-up period ends
Gold-Specific Risk Considerations
PAXG introduces risk factors that differ from crypto-native asset strategies.
Gold Market Hours
Reference gold markets operate on specific schedules. PAXG pricing behavior may differ during active market hours and off-hours.
Modules adjust quoting thresholds, hedge tolerances, and participation rules by market session.
Redemption Constraints
PAXG redemption into physical gold depends on issuer processes, minimum thresholds, and settlement timing.
Modules do not depend on physical redemption as an exit path.
Correlation Regime
Gold and digital asset markets can shift between low, moderate, and inverse correlation regimes during macro stress.
Modules monitor rolling correlation, spread persistence, and hedge efficiency before capital activation.
Venue Liquidity Fragmentation
On-chain and centralized market depth can diverge materially during volatility.
Routing logic uses deterministic execution rules, venue scoring, and state-based participation controls.
Oracle and Reference Drift
Reference pricing inputs may momentarily diverge across data sources.
Execution requires cross-check validation, tolerance bands, and fail-closed state machine controls.
Control Framework
Each module inherits the global BASIS risk state machine and module-specific eligibility filters.
The control architecture emphasizes:
deterministic execution
mathematical constraint checks
state machine risk controls
structural alpha capture rather than directional speculation
execution precision through proprietary routing infrastructure
BASIS trading and routing infrastructure is informed by Base58 Labs research and BHLE design principles, including sub-50μs latency targets, 100K+ OPS processing capability, and deterministic venue selection under constrained risk states.
Wallet and Asset Handling for PAXG
Deposit
Connect a Web3 wallet and deposit native PAXG
Funding Wallet
Holds native PAXG for deposit and withdrawal
Staking Wallet
Holds stPAXG for staking and reward accumulation
Swap
PAXG → stPAXG and stPAXG → PAXG only, 1:1
Display Unit
USDT is used internally for accounting display only
Withdrawal Fee
0.05%
Swap Fee
0.01%
Deposit Fee
0%
Withdrawal Time
Typically 1–6 minutes for PAXG
Next Step
Choose a module page below to review detailed mechanics, eligibility rules, execution constraints, and risk controls for each PAXG module.
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