AuRoom
Emergency Rupiah Access for Gold Holders
Created on 10th January 2026
•
AuRoom
Emergency Rupiah Access for Gold Holders
The problem AuRoom solves
Screenshot 2026-01-10 at 23.38.10
Problem We Solve
In Indonesia, gold is one of the most widely held financial assets. It is not primarily used for speculation, but as a form of financial protection and a long-term store of value. According to a World Gold Council survey, approximately 67% of Indonesians hold gold in various forms, reflecting its role in building financial resilience.
However, a critical problem emerges during emergency cash needs.
When gold holders require liquidity, the existing options are inefficient and often harmful:
- Selling gold leads to immediate value loss due to wide bid–ask spreads, typically around 8–12%, and permanently removes exposure to a long-term safe asset.
- Pawning or pledging gold involves manual processes, administrative friction, and time delays that are not suitable for urgent situations.
- Postponing urgent expenses—such as medical costs, education fees, or working capital—can cause further financial and personal stress.
As a result, many users lose value not because gold is a poor asset, but because current liquidity infrastructure is not designed for real-life emergencies.
The core issue is not gold itself, but the lack of a system that allows fast, partial, and reversible access to cash without forcing users to sell their gold holdings.
Our Solution
Auroom introduces a gold-backed emergency liquidity mechanism that transforms gold from a passive store of value into an active financial buffer.
Instead of selling gold when cash is needed, users can borrow against their gold to access immediate liquidity. The process is:
- On-chain and transparent, removing manual approvals and opaque pricing
- Fast, enabling emergency access to funds
- Non-destructive, allowing users to retain long-term exposure to gold
By enabling temporary liquidity rather than permanent liquidation, Auroom aligns with real user behavior:
People don’t want to sell gold.
They want short-term cash without losing long-term financial security.
Why This Matters
Auroom addresses a real, widespread problem at the intersection of traditional asset behavior and modern financial infrastructure. It unlocks liquidity from an asset that millions already trust, without asking users to change how they store value—only how they access it when they need it most.
Challenges we ran into
1. Bridging the Web3-to-Web2 Gap (Integration Challenge)
Ensuring a seamless and reliable transition from on-chain asset locking to off-chain bank disbursement.
Problem: Integrating the IDRX settlement layer was difficult because they do not provide a developer sandbox, making live end-to-end testing of the gold-to-fiat lifecycle impossible during development.
Solution: We engineered a robust simulation engine that mirrored IDRX callback behaviors based on their technical documentation. This allowed us to rigorously test state synchronization and ensure that gold collateral is only locked once the fiat disbursement is successfully triggered and validated.
2. Abstracting Complexity for Non-Crypto Natives (UX Challenge)
Removing the technical barriers that prevent everyday gold holders from accessing digital liquidity.
Problem: Traditional DeFi lending involves a cumbersome 6-step process, including managing gas fees and calculating collateral ratios, which is too complex for users facing a high-stress emergency.
Solution: We implemented an Intent-Based UX that simplifies the experience into 4 instant steps. By moving all technical calculations and safety buffer logic to the background, we removed the "crypto-friction," allowing users to focus only on the cash they need.
core.jpg
3. Seamless Identity Verification via DID (Compliance & Speed Challenge)
Replacing slow, manual verification with an instant, secure, and decentralized alternative.
Problem: Traditional KYC verification in Indonesia is often slow and bureaucratic, often taking days to process, which is ineffective for time-sensitive financial emergencies.
Solution: We integrated Decentralized Identity (DID). The technical challenge was ensuring that identity data verified on-chain is valid and accepted by liquidity providers, allowing the entire approval process to occur in seconds—as illustrated in our sequence diagram under the IDP/DID verification section.
Tracks Applied (1)
Winner Classification
Technologies used