PAXGy is Now Live on X Layer

PAXGy, a PAXG-backed gold token that grows in gold ounce terms, is now live on X Layer. At launch, X Layer is the only network outside Ethereum mainnet where PAXGy is deployed, making it the home for all secondary-market PAXGy liquidity beyond mainnet.

Alongside the deployment, OKX is running a liquidity incentive campaign for the PAXGy/USDG pool from 24 September to 9 October 2026, with a $10,000 USDT reward pool for participants providing liquidity through OKX Wallet.

PAXGy is a receipt token backed by PAX Gold (PAXG), issued as an ERC-20. Each PAXGy represents an entitlement to a quantity of PAXG that aims to increase over time.

A holder deposits PAXG, or swaps accepted stablecoins, and receives PAXGy at the prevailing exchange rate. The reserves behind PAXGy are lent to vetted institutional borrowers in the gold and PAXG leasing market, and the growth that results is denominated in gold ounce terms rather than dollars.

PAXGy does not rebase. Instead of increasing the number of tokens in your wallet, growth accrues to the exchange rate: your token count stays fixed while each PAXGy comes to be worth more PAXG over time.

This matters for two reasons. First, it's simple to hold: you don't need to track a changing balance. Second, PAXGy behaves like any other ERC-20. It can be routed through DEXs or posted as collateral without being wrapped first, which is a meaningful difference from rebasing yield tokens that often need a wrapper to function in DeFi.

When you redeem, you receive more PAXG than you minted, assuming the reserve strategies have performed.

X Layer is the only deployment chain for PAXGy outside Ethereum mainnet at launch. That concentration has practical consequences for anyone trading or providing liquidity.

• Cost and speed. Minting, redeeming, transferring and trading PAXGy on X Layer runs at sub-cent gas fees with near-instant finality. For an asset where the underlying growth accrues gradually, transaction costs matter — a few dollars of gas per interaction on mainnet erodes returns in a way that sub-cent fees do not.

• Native mint and redeem. X Layer supports direct native minting and redemption for PAXGy/USDG, not just secondary trading pairs. Capital can enter and exit without routing through mainnet first.

• Concentrated liquidity. Because X Layer is the sole non-mainnet venue at launch, PAXGy liquidity outside Ethereum is consolidated in one place rather than fragmented across chains. The PAXGy/USDG pool launches on Uniswap with seeded liquidity and support from institutional market makers, to keep spreads tight from day one.

From 24 September to 9 October 2026, OKX is running a liquidity incentive campaign for the PAXGy/USDG pool on X Layer.

Participants provide liquidity to the PAXGy/USDG pool via OKX Wallet and earn boosted rewards from the campaign pool. These rewards are in addition to the underlying growth of PAXGy itself — liquidity providers are exposed to the underlying asset's gold-denominated growth as well as the campaign incentives, subject to the usual considerations around providing liquidity to any pool.

• PAXGy is available on OKX Wallet, which surfaces tokenised real-world assets available on supported networks.

• You can mint directly from the issuer, subject to identity verification and jurisdictional eligibility, or acquire it on the secondary market through supported wallets, exchanges and decentralised venues. On X Layer, the PAXGy/USDG pair supports both native mint/redeem and secondary trading.

• From 24 September, add liquidity to the PAXGy/USDG pool through OKX Wallet to participate in the campaign.

• Redemption with the issuer is available to verified holders only. Redemption may incur withdrawal fees and is subject to processing time.

Several further integrations are in development. These include availability through OKX Onchain Earn, use as collateral in X Layer lending markets, and compatibility with yield-tokenisation protocols for fixed-yield gold strategies.