TL;DR
- Gyroscope’s New Stablecoin: Gyroscope has launched “Savings GYD” (sGYD), a yield-generating stablecoin backed by Galaxy, offering DAOs an annualized yield of 12%-15%.
- Revenue and Investment: sGYD generates revenue from tokens in segregated vaults and high-yield liquidity pools, aiming for stable and lucrative returns.
- User Engagement: The launch coincides with Gyroscope’s SPIN program’s new phase, incentivizing user participation through points and yield options.
Decentralized finance (DeFi) protocol Gyroscope has announced the launch of a new yield-generating version of its stablecoin, “Savings GYD” (sGYD). Backed by Galaxy, this initiative aims to attract decentralized autonomous organizations (DAOs) to allocate a portion of their treasuries to sGYD, offering an annualized yield of 12%-15%, variable to market conditions.
Gyroscope's yield-bearing stablecoin – sGYD – is live.
sGYD adds native yield to the decentralized all-weather stablecoin GYD.
12-15% APR expected at launch. With mitigated risks thanks to GYD's risk control innovations.
sGYD also ushers in the final phase of SPIN points. pic.twitter.com/1WjrGD1TxR
— Gyroscope (@GyroStable) August 8, 2024
Revenue Generation and Investment Strategies
The revenue for sGYD comes from tokens backing assets placed in segregated vaults across various DeFi investment strategies. Additionally, the protocol may source extra revenue from fees generated by its high-yield liquidity pools, which were launched earlier this year. This diversified approach aims to provide a stable and lucrative yield for token holders.
SPIN Program and User Engagement
The launch of sGYD coincides with the start of the next phase of Gyroscope’s points-earning program, SPIN. During “season 2,” users can choose to earn native yields with baseline points or boost their rewards by forgoing the yield. This program is designed to engage users and incentivize participation in the ecosystem.
The Role of Stablecoins in DeFi
Stablecoins are cryptocurrencies designed to maintain a stable value, primarily linked to the U.S. dollar, and play a vital role in facilitating trading and transactions within blockchain networks.
The next generation of stablecoins, which pay out yields to holders, is gaining popularity. For instance, Mountain Protocol’s USDM backs its price with U.S. Treasuries and passes on bond yields to token holders, unlike Tether’s USDT.
Maker’s stablecoin shares protocol revenues from its real-world asset (RWA) backing and DeFi lending activity with savings DAI (sDAI) holders. Ethena’s “synthetic dollar” USDe harvests funding rates with a carry trade, sharing the revenue with those who stake the token on the protocol.
Gyroscope’s Unique Position
Gyroscope promotes its U.S. dollar-pegged token as a reliable “all-weather” stablecoin, designed to safeguard investors against the risks associated with stablecoin failures.
It backs its value with multiple stablecoins deployed in strategies such as yield-generating sDAI and USDC in Flux and supports automated market-making (AMM) strategies like LUSD and crvUSD.
The project has raised $4.5 million in venture funding led by Galaxy and Placeholder VC and currently has $29 million in total value locked on its platform, according to DefiLlama.
