Yield Strategy

stGold gives holders access to real, gold-denominated returns by participating in time-tested gold leasing markets — without using debt, derivatives, or paper gold.

Rather than originating leases directly, ORO partners with established gold finance providers that structure and manage institutional gold leases. These providers lease gold to vetted institutional lessees such as refiners, manufacturers, and market makers. In return, lessees pay a pre-agreed lease fee in gold, which accrues to stGold holders.

How Returns Are Generated

When users convert GOLD into stGold, the gold is locked in a smart contract and allocated to leasing pools managed by trusted third parties. These gold finance partners lease the gold to institutional lessees under fully collateralized, defined-term agreements.

Lessees use the gold as inventory or working capital, and in return, provide a gold-denominated return to the pool.

Key Characteristics of These Leases

These are true leases of physical property, not debt instruments:

• Leased gold remains the property of the stGold holder

• Lessees cannot sell, encumber, or hypothecate the metal

• In the event of insolvency, the leased gold is not part of the lessee's estate

• No use of derivatives, futures, or paper gold — only physical gold flow

Return Mechanics

• Underlying Asset: Physical gold, tokenized and vaulted

• Lessees: Institutional users of gold inventory

• Lockup: 12 months (shorter durations in development)

• Returns:

  • Gold-denominated lease f, distributed monthly

  • Must be claimed manually from the ORO dApp

• Conversion: stGold can be redeemed for GOLD after the lockup

Risk Mitigation

To protect holders, ORO works only with trusted gold leasing intermediaries who enforce strict due diligence, monitoring, and legal protections:

Risk Area	Risk Control Measures
Counterparty Risk	Thorough due diligence on lessees, KYC/AML, credit screening
Custody & Ownership	Gold is legally owned by the stGold holders and held in insured vaults
Collateral & Default	Gold leasing agreements are overcollateralized and secured via legal agreements
Oversight	Inventory tracking, audit rights, and strict monitoring protocols

Who Leases the Gold?

Common lessees include:

• Gold refiners — managing production cycles

• Jewelry manufacturers — financing work-in-progress

• Bullion market makers — managing short-term inventory

What's Next

stGold is designed for long-term holders, but more flexible options are coming:

• 3M and 6M leasing pools

• Variable-rate leasing models

• Auto-rollover and liquidity support post-lockup