What is GUSD (GUSD)?

Deep Dive

1. Purpose & Value Proposition

GUSD acts as a bridge between traditional finance and crypto, offering stable yields in volatile markets. Unlike conventional stablecoins, it automatically distributes daily rewards derived from three sources:
- Tokenized U.S. Treasuries – Interest from short-term government bonds.
- Gate ecosystem revenue – Profits from exchange fees and services.
- Stablecoin strategies – Yield farming and arbitrage opportunities.

This structure aims to provide predictable returns while maintaining a 1:1 USD peg, redeemable with fees (Gate Blog).

2. Key Differentiators

GUSD’s unique dual-yield model allows users to earn base yields (4.4% APY as of November 2025) simply by holding the token, while also stacking additional rewards by allocating it to products like Launchpool staking or fixed-term deposits. For example:
- Staking GUSD in Launchpool earns hourly token airdrops and retains its base yield.
- Minting GUSD via USDT/USDC deposits combines staking rewards with ecosystem-driven APR adjustments.

This contrasts with most stablecoins, which require active participation in DeFi protocols to generate yield (Gate Blog).

Conclusion

GUSD reimagines stablecoins as dynamic yield certificates, blending RWA security with crypto’s composability. Its automated rewards system and integration with Gate’s ecosystem position it as a hybrid tool for both conservative and active investors. How might evolving regulations on tokenized RWAs impact GUSD’s yield sustainability?