Aurus is applying the DeFi concept to revolutionize the precious metals sector. The company has created a truly decentralized platform that allows companies like refiners, traders and warehouses to mark precious metals themselves. The tricky part of the Aurus system is its revenue sharing token, AurusDeFi (AWX), which allows owners to earn a share of the platform’s revenue.
Aurus will destroy the precious metals industry
The shopping app Robinhood positions itself as a democratizer of finance for all. However, the centralised nature of the platform – where only one party has the ultimate decision-making authority – is in direct contradiction to this mission. Just ask the redditors in the WallStreetBets community. As they noted in January, traders have no control over how the stock market is managed. When they run into trouble, their only recourse is to withdraw their funds and go to another stockbroker (where they will likely face the same problems, for now anyway).
This incident helps explain why the concept of decentralized finance – or DeFi, as it is commonly called – has gained so much popularity. DeFi eliminates the need to rely on intermediaries and the associated bureaucracy or manipulation that has plagued the traditional financial system for so long. Instead, DeFi relies on smart contracts – programs that automatically enforce the terms of the agreement – on the blockchain to conduct transactions. Smart contracts allow markets like brokers and exchanges to operate seamlessly 24 hours a day, 7 days a week, 365 days a year. This technology is still in its infancy, but the projects using it are creating a faster, more transparent and accessible financial system for everyone.
Aurus is applying the DeFi concept to revolutionize the precious metals sector. The company has created a truly decentralized platform that allows companies, such as refiners, traders and warehouses, to mark precious metals themselves. The tricky part of the Aurus system is its revenue sharing token, AurusDeFi (AWX), which allows owners to earn a share of the platform’s revenue. But to understand the tokenomics behind AurusDeFi, you need to dive deeper into how the ecosystem works.
Establishment of a decentralised precious metals ecosystem
Aurus not only makes precious metals more accessible to retail investors, but also eliminates the default risk associated with centralized systems. The company is building a global ecosystem of precious metals refiners, vaults and brokers who work together to mint their own tokens. In the case of Aurusgold (AWG), each token is backed by a 99.99% LBMA-accredited gram of gold and stored globally in fully insured and monitored vaults. It should be noted that Aurus, as a technology provider, is not involved in the minting and therefore has no influence on the gold traded or held in custody.
UK-based Direct Ballion is the first precious metals trader to join the Aurus ecosystem, receiving 5kg of yellow metal in 2019. Since then, the company has added Aurusgold to its offerings as a more convenient and liquid form of gold ownership.
The platform’s revenue sharing mechanism encourages industry partners to participate in the ecosystem. Gold suppliers and custodial partners receive an equal 50% (25% each) share of the coin, transaction and custody fees resulting from the use of AurusGLD. The remaining 50% will be divided equally among the owners of the revenue sharing token called AurusDeFi. Thanks to this unique business model, the ecosystem is highly scalable and completely self-sufficient.
AurusDeFi has a total stock limited to 30 million tokens and represents a participation in the Aurus ecosystem that offers its holders a passive income stream paid into AurusGOLD. As the ecosystem grows, so does the revenue generated. To put this possibility in context, bitcoin first made headlines recently when it reached the $1 trillion mark. The total value of the world’s gold reserves, on the other hand, is estimated to be more than ten times that amount.
In February this year, Aurus successfully completed its latest fundraising, raising three times the expected capital. The next step is to register the tokens on CEX.IO and BiKi. Founded in 2013 in London, CEX.IO is one of the most established cryptocurrency exchanges with over four million users worldwide, while Biki has over two million users in Asia. These partnerships represent a significant milestone for Aurus, as both exchanges offer cash deposits and withdrawals, as well as other income-generating products for retail and institutional clients.
Aurus’ vision is to build an open and highly scalable ecosystem that benefits the entire precious metals industry and enables anyone to invest and trade in this field. With this in mind, the company recently launched a new token for a different asset class, aimed at WallStreetBets traders. AurusSILVER (AWS) offers the same benefits as AurusGOLD, such as easy access to the $1.5 trillion metal market, and each token is backed by one gram of LBMA-accredited silver.
Aurus’ ambitions don’t stop there. With AurusPLATINUM (AWP), Aurus could be one of the first platinum tokenization platforms. Although this precious metal is not as well known as gold and silver, it is a revolutionary development for the retail industry. Currently, one of the only ways to buy platinum in digital form is through an ETF on the South African Stock Exchange.
The introduction of AWS and AWP makes AWX even more valuable, as AWX owners receive 30% of the revenue they generate. Aurus plans to list both tokens on CEX.IO in the coming months.
Aurus is also pleased to announce new industry partners for the platform. Aurica Metales is the oldest and largest precious metals broker in Chile. Aurus’ demand for gold was already so great that Aurica ran out of supplies and had to buy back several times. The company also recently started selling AurusSILVER and plans to expand to other Latin American countries. In addition, the company will represent a Turkey-based international precious metals trading company and one of Singapore’s largest precious metals brokers, Indigo Precious Metals (IPM). The Turkish broker was founded more than 25 years ago and counts central banks and government agencies among its clients, while IPM is led by leading experts in the metals sector and will be the first partner to issue AurusPLATINUM.
As noted above, Aurus is not involved in the delivery, minting or distribution of metal-backed tokens. Nevertheless, they play a very important role and allow you to take full advantage of the stability of Aurus tokens: as a means of exchange, as security, as a yield generator or simply as an easily accessible investment product.
The upcoming listing with CEX.IO is an example of the kind of partnership Aurus is forging to bring added value to its users. Aurus also recently partnered with Tangem and Cyclebit to launch its POS terminals with stablecoin support. Holders can load their tokens (AWG, AWS, AWP) onto the Aurus Vault signer card, a hardware crypto-currency wallet that will soon allow users to pay in gold, silver and platinum at stores around the world.
From this perspective, the future looks bright for Aurus, as there is much to look forward to in the coming months – at least for the precious metals market.
Aurus tokens are available here on CEX.IO : AurusGOLD | AurusDeFi
Stay in touch with Aurus: Twitter | Telegram
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