The launch of the new Novem Gold Protocol will finally bring the Precious Metals trade into the current age of automation by radically reducing tokenization time. Anyone can now issue tokenized precious metals in seconds, a process that, till now, took days and still does on other platforms.
We’re not exaggerating when we say never before has issuing precious metals tokens been so easy. We know for a fact because we went head on to solve the main setbacks associated with issuing precious metals tokens, namely the lengthy regulatory processes and time it takes to source, store, and redeem precious metals.
How we did it?
We wanted to make it easy to issue precious metals backed tokens.
Because gold and other precious metals aren’t readily available, and because we knew it was worth our time, we studied the regulation and found a way to set up a decentralized platform with liquidity pools, commodity storage pools, and refinery pools to create immediate access to all sorts of precious metals.
By creating a direct source of precious metals through our liquidity pools, we’ve successfully automated all processes involved in issuing precious metals tokens which means now anyone can tokenize and brand precious metals in a matter of seconds.
Read through our Token Requestor highlights below.
Want to issue your own precious metals tokens?
Another setback we set out to solve was the fact that precious metals don’t generate income. You can only enjoy profits from precious metals stocks when they appreciate in value and you sell them. While we were creating the Novem Gold Protocol to solve the issue of speed, we saw a way to simultaneously turn our precious metals tokens into passive income generating ones.
How this works?
In order for our protocol to work we need sufficient liquidity. For this we need liquidity providers to lend their Novem commodity tokens to our liquidity pools.
In return for lending Novem commodity tokens, liquidity providers will be rewarded with our utility token, NVM, which can be used to vote on updates to the protocol or exchanged for other digital currencies. The reward is issued as a yield each time there is a transaction.
Let’s say you have a friend Jenny who is a blockchain enthusiast and has recently been wanting to find ways to earn passive income.
She wants to do so while diversifying her portfolio, and gold is something she hasn’t been interested in till hearing about Novem Gold’s reward generating gold tokens.
She is ready to provide liquidity to our gold pool in order to start earning a yield.
To do so, Jenny must first buy our gold backed NNN tokens. Once she’s purchased her selected amount, she then transfers those tokens to the liquidity pool.
Once the commodity tokens are received into the liquidity pool and a token generation takes place – where the liquidity pool tokens are loaned out to create requestor tokens. Once this transaction takes place the yield is deposited into the Liquidity Pool Smart contract*.
Then, based on her share of the total liquidity, the Liquidity Pool Smart contract calculates the yield amount she is entitled to.
The yield is sent to Jenny’s wallet as NVM tokens.
*Smart contracts are the fuel behind DeFi protocols such as ours. Specifically, they are coded processes that enable the protocol to run automatically when specific conditions are met e.g. when a token request transaction is complete, liquidity providers receive a yield.
Want to become a liquidity provider?
Whether you’re a digital currency exchange, crypto fund manager, or startup that wants to introduce precious metals backed tokens into your ecosystem, the new platform will provide many more opportunities for you to generate earnings than before. Here are what each type of token requestor can look forward to on the new platform:
Through Novem Protocol’s simplification of regulatory procedure, exchanges can now offer new precious metals tokens with ease and expand to new markets. The added bonus of customizing tokens gives exchanges another opportunity to present more innovative offerings to buyers. This diversification will help increase transaction volume and ultimately earnings.
Imagine stocking your shop with never-before-seen items – your customers will have a field day! That’s what Crypto Fund managers will be able to do via Novem Gold’s decentralized platform. Fund managers can offer their clients precious metals tokens according to market demands, including rare metals.
A greater selection naturally attracts more clients, and more clients means more investments.
Generate passive income for the fund and client by providing liquidity to our pools.
Token owners who operate within the service industry can now brand their own tokens to offer as rewards to their clients. As client relationship management is crucial, offering a high-value gift in the form of a tradeable precious metals token is both novel and brand affirming. Furthermore, token owners can opt to use their precious metals token within their network as an alternative to fiat currency, thus adding value to their service.
Novem Gold buys the finest LBMA certified precious metals from Europe’s oldest refineries and stores them in a highly secure treasury in Liechtenstein.
As we are moving to a DAO (decentralised autonomous organisation), the governance of the Novem Gold Decentralized Tokenization platform will be performed by the community of NVM token holders. Our utility token holders will be able to influence the evolution of the Novem Gold ecosystem, determining frequency of audits, type of metals to tokenize, interest rate for lenders and more.
The opening up of our governance is a harbinger for the great things to come on the new platform, namely greater transparency, flexibility, opportunities and efficacy.
Novem Gold’s move to a decentralized platform is disrupting the precious metals market by adding even more value to already high value commodities by blessing them with the fruits of yield generation and fast tokenization.
With our Novem Gold Protocol and liquidity pools already in place, you can start taking advantage of the fast issuing of branded gold tokens today and soon, other tokens based on precious metals of your choice.Read from the start