GOLDp
GOLDp is the Polaris digital gold.
It is a synthetic asset designed to track the gold price using overcollateralized minting positions backed by pETH.
Unlike traditional tokenized gold, no physical bullion is held on behalf of users. Anyone can independently verify the collateral backing every GOLDp in circulation, with minting and redemptions enforced by immutable smart contracts.
Since GOLDp exists entirely onchain, users can freely access digital gold without KYC or relying on custodians.
Using GOLDp
GOLDp is minted by depositing pETH as collateral and opening an overcollateralized minting position.
Like USDp, GOLDp uses the same minting mechanism and minimum collateral ratio of 115%. In practice, this means every position requires at least $1.15 worth of pETH collateral for every $1 worth of GOLDp. Market movements can later reduce that ratio, making positions that fall below 115% eligible for liquidations.
The 115% minimum collateral ratio is the point at which a position becomes eligible for liquidation. Users should maintain a higher collateral ratio to provide a greater safety margin.
Once minted, GOLDp provides onchain exposure to the price of gold. It can be transferred freely on Ethereum, held as a digital gold asset or integrated into DeFi applications.
On top of this, users who want to earn protocol-native yield can deposit GOLDp into the GOLDp Earn Vault, which distributes both GOLDp and pETH from a portion of the interest paid by GOLDp minters and pETH liquidation gains. The exact mechanics are explained in the Earn Vaults section.
Users may hold GOLDp as digital gold, deposit it into the Earn Vault, provide liquidity alongside other gold assets or build other strategies on top of it. The resulting market exposure depends on how GOLDp is ultimately used.
Maintaining the Peg
The GOLDp peg is supported by pETH overcollateralization and by market participants using the protocol’s peg mechanisms whenever arbitrage opportunities arise.
When GOLDp trades above the gold reference price, new GOLDp can be minted at gold reference value against pETH collateral and sold into the market. The additional supply creates downward pressure on the market price.
When GOLDp trades below the gold reference price, market participants can redeem GOLDp for the underlying collateral, which removes GOLDp from circulation and reduces the circulating supply.
| GOLDp price | Arbitrage | Result |
|---|---|---|
| Above gold oracle price | Mint and sell GOLDp | Supply increases, and price returns toward the target |
| Below gold oracle price | Redeem GOLDp | Supply decreases, and price returns toward the target |
Together, these mechanisms adjust the circulating supply in response to market conditions.
These arbitrage paths operate through Adaptive Peg Defense, which distributes the collateral, debt, and fees created by direct minting and redemptions across open positions.
Two interest-rate mechanisms complement this peg design.
The Peg Stability Rate is the main interest rate paid by GOLDp minters. It adjusts in response to minting and redemption activity, helping the market expand when GOLDp demand is high and contract when redemption demand is high.
The Protocol Safety Rate is an always-active market-internal redistribution mechanism. It moves value from higher-leverage positions to lower-leverage or collateral-only positions, rewarding positions that strengthen the market’s collateral health.
At the same time, minting mechanics are identical to those of USDp, including the distribution of protocol-generated value as pETH to minters. For lower-interest assets such as GOLDp, these offsets can make the effective cost of minting meaningfully lower than the headline rate.
