#GUSD

The GUSD stablecoin from the GATE exchange is a fundamentally new tool that combines the functions of a classic stablecoin and a yield-generating investment product. Below is a detailed analysis of how it works, its backing, and its risks.

How GUSD Works and What Backs It

The main difference between GUSD and ordinary stablecoins (such as USDT or USDC) is that it is a yield-bearing certificate. You receive GUSD in exchange for deposited USDT or USDC, and it starts generating daily yield.

Its backing and sources of yield are hybrid and include three main components:

· Tokenized US Treasury Bonds (RWA): This is the primary asset providing basic stability and a portion of the yield (about 4.4% per annum).
· Gate ecosystem revenue: The exchange’s profit from fees, institutional services, and DeFi activities.
· Yield strategies with stablecoins: For example, providing liquidity.

Regular yield is formed from these sources and is distributed daily. Upon redemption, you receive your USDT/USDC back plus all the accumulated yield.

Additional Important Information

· Ecosystem use: You can not only hold GUSD for yield. It can be used as collateral for loans, as well as to participate in staking other tokens through Launchpool, earning double yield.
· Transparency: Gate has announced plans to disclose proof of reserves and cooperate with custodians to ensure transparency, but at this time there is no independent confirmation of this in the provided sources.
· This is not a deposit: GUSD represents the value of your investment, but does not grant ownership rights to the underlying assets (for example, to specific bonds).

Conclusion: GUSD is an innovative but complex product. It offers a convenient way to earn passive income on stablecoins within the Gate ecosystem.