In the normalized volatility of the cryptocurrency market, investors often face a dilemma: either take on high risks to chase excess returns or let their assets sit idle in their wallets with almost zero returns.
GUSD, launched by Gate in August 2025, innovatively addresses this challenge. It is not a traditional stablecoin but a digital dollar financial certificate pegged 1:1 to the USD, supported by low-risk real-world assets (RWA) such as U.S. Treasury bonds and the income from the Gate ecosystem.
The core value of GUSD lies in the fact that it starts generating returns for holders from the day it is minted, with a current annualized yield of 4.4%. More importantly, it brings the traditional financial logic of "maturity interest + principal repayment" onto the blockchain, combining the stability of RWA with the flexibility of blockchain.
01 GUSD Product Positioning
Unlike traditional stablecoins that focus solely on exchange rate stability and payment convenience, GUSD represents a new direction in the development of stablecoins.
GUSD aligns its product concept towards securitized assets, introducing the concept of "yield to maturity" on-chain by using real-world assets such as U.S. Treasury bonds as the underlying support.
When holders redeem, in addition to retrieving the principal, they may also receive the accumulated interest in one lump sum, which makes holding coins more akin to holding bonds rather than merely serving as a trading medium.
GUSD is supported by a diversified portfolio of low-risk assets, including RWA assets such as U.S. Treasury bonds, revenue from the Gate ecosystem, and mainstream stablecoins. This dual-track income structure provides users with more reliable income protection.
02 How to mint GUSD?
The ways to obtain GUSD are mainly divided into two categories, and the entire process is designed to be simple and intuitive.
Minting Acquisition: Main Earning Channels
This is the main way to obtain GUSD and enjoy the benefits. Users can use the "On-chain Earning" section of the Gate platform to exchange GUSD at a 1:1 ratio using USDT or USDC.
Individual users can stake up to 5 million USDT or equivalent assets in USDC. From the day of minting, GUSD will begin to generate returns at an annualized yield of 4.4%, with the system automatically distributing the earnings to the spot account daily.
Spot Exchange: Supplementing Liquidity Channels
Users can also directly exchange GUSD for USDT in the spot market, which is suitable for users who want to quickly adjust their positions.
It is important to note: GUSD obtained through spot trading or deposits will not earn interest if it has never undergone minting operations.
Users can go to GUSD minting to perform any amount of minting operations, and after completion, all holdings can participate in the daily normal distribution.
03 GUSD redemption mechanism
In the cryptocurrency market, how to exit an investment is often as important as how to enter. GUSD provides a flexible and transparent redemption mechanism, ensuring high liquidity of user funds.
Quick Redemption
- Fee: 0.1%
- Arrival time: Usually, the USDC can be returned to the spot account within 10 minutes.
- Applicable scenarios: Suitable for investors with an immediate need for liquidity.
Standard Redemption
- Transaction Fee: 0.05%
- Arrival time: Funds will be credited within three working days after the application is submitted.
- Applicable scenarios: Suitable for users who pursue low costs and can accept waiting time.
Regardless of the method chosen, the system will automatically convert GUSD to USDC at a 1:1 ratio, ensuring a transparent and stable process.
The core advantages of 04 GUSD
GUSD demonstrates several obvious advantages in product design and application, creating a unique differentiation in the stablecoin space.
Yield Stacking Mechanism
The most notable feature of GUSD is its yield stacking mechanism. While users hold GUSD to earn a basic annual yield, they can also use GUSD to participate in liquidity mining on Gate Launchpool to obtain additional rewards.
Recently, the annualized yield of the GUSD mining pool has performed excellently, with the AVNT mining pool reaching 16.32%, the U mining pool reaching 16.85%, and the BOT mining pool reaching 16.07%.
This dual income model of "basic income + mining income" provides ordinary users with richer income possibilities through GUSD.
Diverse application scenarios
GUSD has been deeply integrated into the Gate ecosystem, expanding various application scenarios, far beyond ordinary financial products:
- Launchpool participation: Users who stake GUSD can earn the original 4.4% annual yield, as well as additional project token rewards.
- Spot Trading: Gate has launched several trading pairs including GUSD/USDT, BTC/GUSD, and ETH/GUSD, allowing users to directly use GUSD to purchase other cryptocurrencies.
- Margin Collateral: GUSD can be used as collateral for a unified margin account. Users can use GUSD as margin during leveraged trading to enhance capital utilization without sacrificing returns.
- Current Wealth Management: GUSD is also included in the Yu Bi Bao as a current wealth management product, further expanding the users’ fund usage scenarios.
Transparency and security commitment
In the cryptocurrency market, transparency and trust are the most concerning issues for users. GUSD has made clear commitments in these two areas:
Gate promises to publicly disclose reserve proof on the product page, showcasing documentation issued by a custodian bank or partner institution.
All GUSD issuances will be backed by sufficient real-world assets and subject to public verification to ensure asset transparency and security.
05 Practical Suggestions and Risk Reminders
For ordinary users, especially newcomers to the crypto space, GUSD offers a low-threshold stable income entry. Here are some practical tips:
- Starting with basic earnings: first, exchange some idle USDT or USDC for GUSD to obtain a stable annual yield of 4.4%.
- Try yield stacking: After familiarizing yourself with the basic functions, you can participate in mining activities such as Launchpool with some GUSD to earn additional rewards.
- Ecological Comprehensive Application: When trading or using leverage, prioritize using GUSD as collateral to enhance capital efficiency without sacrificing returns.
Investment always comes with risks. Although GUSD is backed by low-risk assets, users still need to be cautious:
- The GUSD yield rate (APR) is calculated daily and expressed as an annual percentage rate (APR) for informational purposes only. The APR does not represent the performance of GUSD for any period beyond a specific date, nor does it represent future results.
- APR may fluctuate daily. Past performance is not a reliable indicator of future results.
- GUSD may have redemption restrictions that could affect your ability to exchange GUSD for supported USD stablecoins.
Future Outlook
For investors looking for a safe haven in volatile markets, GUSD offers a dual option that allows participation in the growth of the cryptocurrency market while enjoying the stable returns of traditional finance.
Whether you are a crypto novice or an experienced player, GUSD is worth being an important part of your asset allocation, helping you maintain stability during market fluctuations while pursuing higher returns based on stable income.
As stated by Gate officials, GUSD is being developed as a yield-generating dollar instrument that can be incorporated into modern investment portfolios. If transparency and compliance verification continue to strengthen in the future, it has the chance to become RWA in Web3 An important model for practical implementation.
