GUSD: Evolving from a safe-haven tool to a new generation stablecoin that generates returns.

The role of stablecoins is being redefined

For a long time, stablecoins in the crypto market have been regarded as an important safe haven for protecting funds. During periods of severe market volatility, investors often use stablecoins to hedge and reduce the risk of losses. However, with the accelerated growth of DeFi and RWA, stablecoins are no longer just a tool for temporarily holding cash, but are gradually becoming on-chain assets with yield capabilities.

In this context, GUSD has become a representative next-generation stablecoin, not only maintaining a 1:1 peg with the US dollar but also possessing the ability to earn you interest, opening up a new value perspective for stablecoins.

Where do the returns come from?

The yield of GUSD is based on the traditional financial world, rather than on crypto-native inflation or token issuance. It is backed by a portfolio of low-risk, stable cash flow assets, including:

• US short-term Treasury bonds

• High-rated corporate notes

• Other fixed income financial products

This architecture has two major advantages:

1. Stable 1:1 USD peg, not affected by market sentiment

Even with the volatile fluctuations in the cryptocurrency market, GUSD remains pegged.

2. Reliable source of income, accumulated from traditional financial interest.

The income structure is transparent, sustainable, and does not rely on market speculation.

For investors who prefer stable and long-term allocations, GUSD is like a smart dollar that generates interest automatically.

Diversified Participation Channels

To allow users with different habits to easily participate, GUSD offers two main ways to engage:

1. Exchange Conversion Quickly exchange GUSD with mainstream stablecoins like USDT and USDC, with a low entry threshold and fast speed.

2. On-chain minting Mint GUSD 1:1 through smart contracts, and simultaneously integrate a smart profit distribution mechanism, with all data publicly transparent on the blockchain.

Whether you prefer the convenience of CEX or embrace DeFi, the freedom is entirely in the hands of the user.

Go to GUSD minting now, users can earn annualized returns daily: https://www.gate.com/staking/GUSD?gt_disable_intercept_jump=1

Smart Earnings and Compound Interest Effect

GUSD generates compound interest continuously through an automatic accumulation and periodic distribution structure.

Example:

If a user mints GUSD with 100 USDT, assuming an annualized rate of 20%, they can redeem approximately 120 USDC at maturity.

This mechanism combines the efficiency of DeFi with the robustness of traditional finance, allowing users to enjoy efficient compound growth on-chain.

The Functional Positioning of GUSD in the Web3 Ecosystem

The application scope of GUSD is gradually expanding, not only as a unit of value storage but also becoming an important part of the Web3 financial infrastructure. The main applications include:

• Long-term Staking and Locking

• Ecosystem Rewards and Event Airdrops

• DeFi lending pool and yield pool

• Launchpool, leveraged products and other multi-module integration

Through these applications, GUSD has become an important driving force for the flow of crypto funds and yield generation.

Three Key Advantages of GUSD

1. The longer you hold, the higher the return. Returns are linked to holding time, creating positive incentives.

2. High liquidity without sacrificing freedom Users can redeem at any time on the exchange or on-chain, making fund utilization more flexible.

3. Deep integration with multiple DeFi protocols Improve capital efficiency and enable GUSD to function in multiple scenarios.

These three major advantages make GUSD stand out among many similar products, becoming a highly practical stablecoin that combines stability and returns.

Compliance and Risk Reminder

GUSD strictly adheres to regulatory frameworks and adopts prudent asset allocation, but users should still be aware of potential risks, including market volatility and policy changes. Before making any yield-generating stablecoin investments, it is recommended to thoroughly read the product terms and assess one's own risk tolerance.

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

Summary

GUSD is not just an on-chain representation of the US dollar; it represents a comprehensive upgrade of stablecoin functionality. Through real-world asset backing and intelligent yield models, GUSD allows for the compatibility of stability and growth. In the next stage of the gradually maturing Web3 finance, GUSD will play a crucial role as a bridge connecting traditional finance and the crypto economy. In this new era, each GUSD is not just a stablecoin, but also an intelligent wealth tool that can continuously work for you.

Original link: https://www.gate.com/learn/articles/gusd-the-next-evolution-of-yield-generating-stablecoins