Gyroscope Launches Stablecoin With Yields of Over 10%
Date: 2024-08-09 Author: Oliver Abernathy Categories: BUSINESS
Decentralized finance protocol Gyroscope has announced the launch of a new version of its stablecoin that will generate income. The new coin, called "Savings GYD" (sGYD), promises holders annual returns of between 12% and 15%, depending on market conditions. The team explained that the income will come from assets staked in segregated vaults used in various DeFi strategies. Additionally, additional income can be generated through fees from high-yield liquidity pools launched earlier this year.
Gyroscope aims to attract decentralized autonomous organizations (DAOs) to invest a portion of their treasury funds in sGYD to generate income. Along with the stablecoin launch, the protocol also began the second season of its SPIN points earning program, where users can choose between earning a basic income or increased rewards for forgoing yield.
Stablecoins, cryptocurrencies with a fixed price most often pegged to the US dollar, are key infrastructure for trading and transactions on blockchains. The next generation of stablecoins that pay yields to their holders are becoming increasingly popular.
For example, Mountain Protocol’s USDM backs its value with US Treasury bonds, passing on yields from the bonds to token holders, unlike stablecoin giant Tether and its USDT. Stablecoin Maker shares yields from its real-world assets and DeFi lending with sDAI holders. Meanwhile, Ethena’s “synthetic dollar” USDe uses arbitrage trading and shares yields with those who lock (stake) tokens on the protocol.
Gyroscope positions its dollar coin as an "all-weather" stablecoin designed to protect investors from potential failures in the stablecoin sector. It uses multiple stablecoins to support its value, hosted in strategies like sDAI and USDC in Flux, as well as automated market making strategies like LUSD and crvUSD.
The project has raised $4.5 million in venture capital from investment firms like Galaxy and Placeholder VC. Gyroscope currently has $29 million in assets locked on its platform, according to DefiLlama.
