GUSD: Introducing Yield into Stablecoin Design

Beyond Dollar-Pegged Stablecoins

Most traditional stablecoins focus solely on tracking fiat currency prices, serving as payment tools or stores of value. GUSD, however, takes a different approach: while maintaining its dollar denomination, it incorporates the concept of on-chain notes that return both principal and maturity yield. This means that holding GUSD not only preserves purchasing power but also delivers bond-like returns.

Real-World Asset Backing

GUSD derives its stability from real-world assets (RWA) such as short-term U.S. Treasury bills and other income-generating financial instruments. Rather than relying solely on cash reserves or simple pegs, financial assets back GUSD, making its economic model resemble traditional notes more closely.

Two straightforward ways to obtain GUSD

• Spot market purchase: Acquire GUSD directly with USDT on exchanges—ideal for users seeking quick portfolio adjustments.
• On-chain 1:1 minting: When holding USDT or USDC, users can mint GUSD on-chain at a 1:1 ratio, supporting long-term allocation and strategic investment.

Mint GUSD now and start earning daily yield: https://www.gate.com/staking/GUSD?gt_disable_intercept_jump=1

GUSD’s Yield Structure

GUSD does not provide daily payouts; instead, the platform calculates and pays out total accumulated returns in full upon redemption or maturity. For example, if you mint GUSD with 100 USDT and the underlying assets earn a 20% return during your holding period, you could redeem approximately 120 USDC, subject to fees or tax adjustments. This approach makes GUSD function more like an on-chain note rather than a simple transactional instrument.

Ecosystem Incentives and Staking Options

To boost utility and engagement, the platform has designed multiple incentive mechanisms for GUSD:

• Staking pools: Hold and stake GUSD to steadily earn base interest.
• Extra token rewards: During special events, the platform may distribute additional token incentives to encourage participation.
• Ecosystem integration: Future plans include connecting GUSD with lending, Launchpool, CandyDrop, and similar features to combine yield generation with community interaction.

Key Differences from Other Stablecoins

• Value of Time: As your holding period increases, so does your return—GUSD offers more than just price stability.
• Flexible Dual-Token Minting: Supports USDT and USDC as sources for minting, giving users greater flexibility.
• Unified Use Cases: GUSD can function as a transaction medium, collateral for margin trading, investment target, and staking asset.
• Transparent and Compliant: The platform is committed to gradually disclosing reserve and custody information to support a verifiable asset-backed approach.

Liquidity and Easy Exit

Users can redeem GUSD for USDC at any time and easily convert it to USDT or other tokens. The process provides low friction and convenience, but users should remain aware of possible fees and differences in settlement times across steps.

Risk Notice

This material does not constitute an offer, solicitation, or investment advice. Always carefully evaluate risks and seek professional guidance before investing. Gate may restrict or prohibit service access in certain jurisdictions; please refer to the user agreement for details.

User Agreement: https://www.gate.com/legal/user-agreement

Conclusion

GUSD integrates note-like returns and RWA support into the stablecoin framework, allowing it to safeguard principal while also delivering maturity-based yield. With ongoing improvements in reserve transparency, compliance disclosures, and custody verification, GUSD stands poised to become a leading example of bringing real asset yield features into the Web3 landscape.