GUSD The On-Chain Stable Asset with Yield Potential

2025-10-20 01:08:48
Beginner
Quick Reads
GUSD is supported by real-world assets (RWA) like short-term U.S. Treasury bonds. These assets generate yield and offer a stable value base for GUSD.

GUSD: A New Financial Paradigm

In the crypto market, stablecoins have traditionally served as stores of value and transaction media, typically pegged 1:1 to fiat currencies like the US dollar. GUSD reimagines this framework by redefining stablecoin value logic—it not only maintains price stability but also integrates a yield-generating model. This enables holders to preserve capital while earning consistent returns, delivering both on-chain value storage and yield.

A Value Foundation Anchored in Real-World Assets

Real-world assets back GUSD, such as short-term U.S. Treasury bonds, unlike conventional stablecoins that rely solely on cash reserves. These assets produce yield and generate sustainable cash flow, providing robust support for GUSD’s value. GUSD serves as an on-chain, yield-bearing financial instrument, unlike passive, pegged digital tokens.

How to Acquire GUSD

To participate in the GUSD ecosystem, users can choose from two options tailored to their needs:

  • Exchange Purchase: Instantly convert USDT to GUSD for streamlined asset allocation.
  • On-Chain Minting: Users holding USDT or USDC can mint GUSD at a 1:1 ratio, ideal for implementing long-term yield strategies.

Start minting GUSD to earn annualized yields, calculated daily: https://www.gate.com/staking/GUSD?gt_disable_intercept_jump=1

Bond-Inspired Yield Model

GUSD calculates yield using an accrued interest and maturity settlement model, rather than daily payouts. For example, if a user mints GUSD with 100 USDT, and the underlying assets generate a 20% return during the holding period, the user will receive approximately 120 USDC upon redemption. This structure mirrors traditional bond concepts—holding GUSD is akin to owning a tokenized security that appreciates over time.

Multi-Layer Incentives Power Ecosystem Growth

To drive user engagement, GUSD offers a range of incentives and utility scenarios:

  • Staking Rewards: Stake GUSD to earn steady returns;
  • Limited-Time Event Bonuses: Receive additional token rewards during special campaigns;
  • Cross-Ecosystem Integration: In the future, GUSD will be usable in lending, Launchpool, CandyDrop, and other Web3 applications, expanding its practical utility.

These features position GUSD as more than just a stablecoin—it becomes a core asset connecting yield, wealth management, and ecosystem participation.

Three Key Advantages

GUSD stands out from traditional stablecoins with three core benefits:

  • Value Creation While Holding: The longer you hold, the higher your potential yield;
  • Flexible Minting and Redemption: Supports both USDT and USDC as funding sources;
  • Versatile Applications: Suitable for trading, margin, staking, or wealth management.

Additionally, the GUSD team continues to enhance reserve transparency and conduct rigorous compliance audits. This ensures all asset backing is publicly verifiable and boosts market trust.

High Liquidity & Seamless Redemption

Users can quickly redeem GUSD for USDC and exchange it for USDT or other major cryptocurrencies. GUSD is designed for low friction and fast execution, allowing users to transfer funds flexibly across different platforms and scenarios. However, cross-platform exchanges may still incur fees and settlement delays.

Risk Disclosure

This content does not constitute an offer, solicitation, or investment advice. Please carefully evaluate risks and consult professional advisors before investing. Gate may restrict or prohibit access from certain regions. Refer to the User Agreement for details.

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

Conclusion

GUSD is more than a stablecoin pegged to the US dollar—it is an innovative asset that combines RWA yield and on-chain security structures. Its launch transforms Web3 stablecoins from passive stores of value into yield-generating financial vehicles. This delivers an on-chain financial value system that aligns more closely with real-world assets.

Author: Allen
Disclaimer
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
* This article may not be reproduced, transmitted or copied without referencing Gate. Contravention is an infringement of Copyright Act and may be subject to legal action.

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