Aave Labs has put forward a governance proposal to list PAXGy on the Aave V4 Global Dollar Hub on Ethereum. The request is currently at the ARFC stage, where community feedback is gathered before any broader governance vote or execution.
If approved, the move would add a yield-bearing version of Paxos gold exposure to a market that already includes PAXG. The proposal says final risk parameters and the asset’s full configuration have not yet been set and will be determined by Risk Service Providers.
What the asset is
According to the proposal, PAXGy is a vault share token issued by Paxos Labs. Users deposit PAXG into the vault and receive PAXGy in return.
The design is intended to generate a return on the deposited PAXG. Rather than paying that return separately, the mechanism described in the proposal lets each PAXGy share become redeemable for an increasing amount of PAXG over time.
Why Aave wants to list it
The proposal frames the listing as an extension of the Global Dollar Hub’s existing gold exposure. Aave already has PAXG in the hub, and PAXGy would add a form of gold-backed collateral that is meant to carry yield while remaining inside the Aave ecosystem.
Aave Labs also argues that the asset could appeal to users seeking commodity exposure with a return component. In its description, the proposal links that appeal to Paxos administration of the yield product and to PAXG’s role as a regulated, physically backed gold token.
The listing is also presented as a portfolio fit for the hub itself. The proposal says PAXGy would complement existing assets by adding a non-correlated, yield-bearing instrument alongside the current PAXG market.
Scope of the proposal
The request is specifically to onboard PAXGy to the Aave V4 Global Dollar Hub on Ethereum. The proposal includes the token contract address for the asset as 0x06c03C72fd05b2EA5bA0F283F5f59f7f05FD2573.
Even so, the submission does not lock in the final market setup. It explicitly states that asset configuration and risk parameters will be updated later by Risk Service Providers, and that the ARFC will be revised accordingly once those assessments are available.
What happens next
The governance process outlined in the proposal starts with feedback during the ARFC period. After that, service providers are expected to publish both an Asset Technical Assessment and an Asset Risk Assessment.
If the response at the ARFC stage is favorable, the proposal would move to Snapshot for off-chain confirmation. The final confirmed step described in the post is execution through the V4 Security Council, which would complete the onboarding of PAXGy to the Global Dollar Hub on Aave V4’s Ethereum deployment.
Source: governance.aave.com