Gold Meets Blockchain: Vega Network Pioneers Non-Crypto Asset Trading with XAU/USDT Pair

Vega Network, a next-generation decentralized exchange protocol, launched the XAU/USDT (Gold Token/Tether US Dollar) trading pair on its DEX network. This development marks the first non-crypto asset market on the Vega network, proposed and voted into existence by its community and $VEGA token holders.

This provides a new innovation avenue not only for Vega but also bridges the gap between decentralized finance (DeFi) and traditional financial assets, catering towards complete spectrum of financial needs. By including a physical entity like gold, Vega is enlarging the range of DeFi has to offer and strengthen its commitment in serving every requirement that modern traders have.

The XAU/USDT market was introduced through Vega’s robust on-chain governance system, where community proposals are deliberated and voted on by token holders. This system demonstrates Vega’s dedication to decentralized and community-driven development, that enables a feature rich, composable trading environment.

This new market with Pyth network-powered price feeds ensures gold prices are reliable and up-to-date for efficient trade settlement, risk management. This integration represents a significant step forward in Vega’s mission to provide a comprehensive DeFi platform that extends beyond cryptocurrencies and into more traditional asset classes.

The first non-crypto perpetual market is live on Vega 🔥

Launched by the community and powered by @PythNetwork data, users can now trade the XAU/USDT gold market on Vega’s decentralised network 🏴‍☠️

Learn more: https://t.co/QpW31x87Tz

— Vega Protocol (@vegaprotocol) July 11, 2024

Empowering Traders with Innovative Market Tools and Governance

Vega’s platform is distinguished by several key features that enhance the trading experience. The XAU/USDT perpetual market, zero gas fees for on-chain decentralized order book trading and fast & cheap transactions. Not only is this setup crucial for streamlined market operations, but it also incentivizes community-driven liquidity provision

This setup not only supports efficient market operations but also promotes liquidity provision driven by the community. Additionally, the market’s infrastructure supports transparent, on-chain settlements, reinforcing the integrity and reliability of trading activities on Vega.

The governance model at Vega plays a crucial role in shaping the network’s offerings. Any $VEGA token holder can propose new markets or modifications to existing ones, with the entire community having the power to vote on these proposals.

This democratic process ensures that the evolution of the Vega network reflects the interests and needs of its users, staying true to the principles of decentralization. The recent introduction of the gold trading pair follows successful launches of other unique markets on Vega, including the first EigenLayer points market and pre-launch market-cap futures for cryptocurrencies.

These initiatives highlight Vega’s flexibility and its capacity to innovate in response to community inputs. Barney Mannerings, co-founder of Vega, expressed enthusiasm about the network’s direction, stating,

“We’re empowering traders with the tools and infrastructure to create the markets they need, enabling open and permissionless innovation through Vega’s permissionless protocol. It’s great to see the community innovate at such a rapid pace using Pyth network for price feeds and Vega for execution. This is the fundamental difference from TradFi, and it’s why I will always champion decentralised and open finance.”

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