# Integrate Tether Gold (XAUt) on Euler Prime

**URL:** <https://forum.euler.finance/t/integrate-tether-gold-xaut-on-euler-prime/1592>\
**Category:** Markets\
**Created:** [July 30, 2025, 6:33am UTC](https://forum.euler.finance/t/integrate-tether-gold-xaut-on-euler-prime/1592 "2025-07-30T06:33:16Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\
**Post date:** [July 30, 2025, 6:33am UTC](https://forum.euler.finance/t/integrate-tether-gold-xaut-on-euler-prime/1592/1 "2025-07-30T06:33:16Z")

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# **Summary**

Objective Labs recommends listing XAUt (Tether Gold) on Euler Prime as a collateral-only asset for stablecoins. This integration introduces a non-USD stable, commodity-backed token to the protocol, broadening collateral diversification beyond fiat-based and crypto-native assets.

# **Fundamentals**

XAUt is a gold-backed token issued by Tether, each representing one troy ounce of physical gold stored in Swiss vaults. Ownership of each token corresponds to specific allocated gold bars, verifiable via Tether’s platform. Tether Gold token is currently available as an ERC-20 token on the Ethereum blockchain.

XAUt tracks the spot price of gold and is commonly used by crypto users seeking exposure to real-world assets or hedging against volatility in stablecoins or broader crypto markets. It combines the stability of traditional commodities with the composability of DeFi, making it a natural fit for collateral use in lending protocols like Euler.

# **Liquidity**

XAUt is a widely used tokenized gold product with sufficient onchain depth for collateral use. Liquidity depth simulations against USDC show that 696 XAUt can be swapped at 5% slippage and 789 XAUt can be swapped at 15% slippage.

 ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/3996e149f20632348364604593e6a64ad5e6f8ca.png)

# Risk Parameters

We recommend that XAUt is onboarded as a collateral-only vault for stablecoin vaults only in Euler Prime.

## **Caps**

| **Asset** | **Supply Cap** | **Borrow Cap** |
| --- | --- | --- |
| XAUt | 200 | - |

We recommend initial conservative caps of 200 XAUt supply, reflecting current liquidity while allowing sufficient room for adoption and market discovery.

## **IRMs**

No IRM is needed as XAUt is non-borrowable.

## LTVs

| **Collateral** | **Debt** | **LLTV** |
| --- | --- | --- |
| XAUt | USDC, USDT, RLUSD, USDS, USDtb | 75% |
| XAUt | USDe | 73% |

We recommend setting borrow LTVs to 2% below LLTVs.

## **Oracle**

We recommend using the Chainlink XAU/USD price feed, which reflects institutional gold pricing. Since traditional gold markets do not operate 24/7, this fundamental feed remains static during market closures (e.g., weekends), helping reduce unnecessary volatility in collateral valuations. This approach aligns with how other non-24/7 assets are handled on-chain.

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**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\
**Post date:** [July 31, 2025, 9:05pm UTC](https://forum.euler.finance/t/integrate-tether-gold-xaut-on-euler-prime/1592/2 "2025-07-31T21:05:10Z")

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Gauntlet is aligned with the proposed Objective Labs recommendations.

We note that the conservative approach for initial market listing is appropriate. Current onchain liquidity can easily handle liquidations based on the recommended caps, and the outlined LLTVs match Gauntlet’s Risk Framework. We will monitor the market once it goes live and plan to adjust caps based on demonstrated user demand via the CRS accordingly.

Gauntlet wants to reiterate the nuance of the oracle that will be utilized for the community. Based on [Chainlink’s documentation](https://docs.chain.link/data-feeds/selecting-data-feeds#market-hours) for the XAU/USD [price feed](https://etherscan.io/address/0x214eD9Da11D2fbe465a6fc601a91E62EbEc1a0D6), it is priced during the following hours:

- 18:00 ET Sunday to 17:00 ET Friday
- One-hour break Monday through Thursday from 17:00 to 18:00

> [@Objective](#):
>
> We recommend using the Chainlink XAU/USD price feed, which reflects institutional gold pricing. Since traditional gold markets do not operate 24/7, this fundamental feed remains static during market closures (e.g., weekends), helping reduce unnecessary volatility in collateral valuations. This approach aligns with how other non-24/7 assets are handled on-chain.

---

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**Author:** ![EulerLabs](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/eulerlabs/32/580_2.png) [@EulerLabs](https://forum.euler.finance/u/EulerLabs)\
**Post date:** [August 7, 2025, 10:00am UTC](https://forum.euler.finance/t/integrate-tether-gold-xaut-on-euler-prime/1592/3 "2025-08-07T10:00:10Z")

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This proposal has been implemented: [Ethereum Transaction Hash: 0x110b9758c2... | Etherscan](https://etherscan.io/tx/0x110b9758c258c0dc2f683734144833d7089579ad331c2e6722a65e1dc4512cca)