What is Collective Finance?

Collective Finance has developed a unique token concept, the “C-Token”, which is a tokenized, asset-backed, and over-collateralized commodity representation.

The first C-Token to be put into circulation will be CGLD, a fully backed gold token valued at 1 gram of gold. Each CGLD token is 100% backed by PAXG sitting in a Multi-sig Vault. CGLD will be provided with a floor price (1 troy gram of gold) which is collateralized, but will not be priced fixed and thus can fluctuate based on demand. Collective Finance will maintain the goal of keeping the CGLD as close to the floor price (1 gram of gold), with the understanding that should the price of CGLD fall below the floor price, it will be trading at a discount to its Net Asset Value (the PAXG collateral held in the Vault). Likewise, the value of CGLD could also rise above the floor price, based on demand and yield earning potential.

This unique opportunity will provide participants with the chance to not only gain yield-earning exposure to gold but also the chance to get this exposure with price upside while at the same time maintaining a known floor value based on the over-collateralization.