Through the "On-Chain Earnings" section of the Gate platform, users can exchange USDT or USDC for GUSD at a 1:1 ratio, enjoying an annualized yield of 4.4% from the date of minting.
This financial certificate, supported by low-risk real-world assets (RWA) such as US Treasury bonds and the income of the Gate ecosystem, redefines the value of stablecoins—holding it generates interest.
01 GUSD: The Innovative Path of Stablecoins
In today’s cryptocurrency market where volatility has become the norm, investors often face a dilemma: either take on high risks in pursuit of excess returns, or let their assets sit idle in wallets with almost zero returns.
Gate’s GUSD, launched in August 2025, innovatively addresses this challenge.
Unlike traditional stablecoins that focus solely on exchange rate stability and payment convenience, GUSD is not a stablecoin in the traditional sense, but rather a digital dollar financial certificate pegged 1:1 to the USD.
GUSD is aligning its product approach with asset securitization, introducing the concept of "yield to maturity" on-chain. Holders, upon redemption, not only get back the principal but may also receive accumulated interest in a lump sum, making the holding behavior more akin to holding bonds rather than merely acting as a trading medium.
02 Minting GUSD: Start Your Path to Earnings in Three Simple Steps
Choose minting path
The methods to obtain GUSD are mainly divided into two categories: minting and spot exchange.
Minting is the primary way to obtain GUSD and enjoy returns. Users can exchange USDT or USDC for GUSD at a 1:1 ratio in the "On-chain Earning" section of the Gate platform.
Individual users can pledge up to 5 million USDT or equivalent assets in USDC, while certified institutional users can have a limit of up to 10 million USD.
Spot exchange provides an additional liquidity channel. Users can directly exchange USDT for GUSD in the spot market, which is suitable for users who want to quickly adjust their positions.
However, it should be noted that GUSD obtained through spot trading or deposits will not earn interest if no minting operation has ever been performed. Users can go to GUSD minting to perform a minting operation of any amount, and after completion, all holdings can participate in the daily normal distribution.
Understanding the redemption mechanism
GUSD provides a flexible and transparent redemption mechanism, ensuring high liquidity of users’ funds.
- Quick Redemption: Fee 0.1%, usually able to return USDC to the spot account within 10 minutes.
- Standard redemption: Service fee 0.05%, funds will be credited within three working days after the application is submitted.
Regardless of the chosen method, the system will automatically convert GUSD to USDC at a 1:1 ratio, ensuring a transparent and stable process.
03 GUSD Yield Mechanism Explained
Source of Income: Double Protection
The returns of GUSD do not come from a single source, but rather provide users with more stable returns through diversified income sources:
- US Treasury Interest: Some funds are allocated to low-risk US Treasuries to obtain stable interest income.
- Ecosystem Revenue Sharing: A portion of the Gate ecosystem’s income will also be distributed to GUSD holders.
This dual-track income structure makes GUSD different from traditional financial products that rely solely on a single source of income, providing users with more reliable income protection.
Yield calculation: transparent formula
The yield calculation of GUSD employs a transparent and automated system. The yield calculation is based on a simple formula: Daily Yield = Average Position × Annualized Yield Rate / 365.
The system will take a snapshot of users’ GUSD holdings every day at 16:00 (UTC+8) to record the average holding amount for the day. Then, it will calculate the earnings for the day based on the above formula.
For example, if you hold 10,000 GUSD and the annual yield is 4.4%, then your daily earnings are approximately: 10,000 × 0.044 / 365 ≈ 1.205 GUSD.
It is worth noting that GUSD earnings are calculated using a daily compound interest model. This means that today’s earnings will automatically roll into tomorrow’s principal, creating a compound interest effect.
In the long term, this compound growth can bring considerable appreciation to assets. Taking an initial investment of 10,000 GUSD as an example, with an annual return rate of 4.4%, the total assets can grow to approximately 10,448 GUSD after one year.
04 Maximizing Yield Strategy: Stacking Yield Model
The most striking feature of GUSD is its yield stacking mechanism. While users hold GUSD to earn basic annualized returns, they can also use GUSD to participate in liquidity mining in Gate Launchpool to obtain additional profits.
Recently, some GUSD mining pools have shown impressive annualized returns:
- AVNT mining pool reached 16.32%
- U mining pool reached 16.85%
- BOT mining pool reached 16.07%
This dual income model of "base income + mining income" provides GUSD with richer earning possibilities for ordinary users.
More importantly, after the GUSD upgrade, the GUSD in user accounts will automatically generate interest, and if they participate in the financial management program, they can also earn compounded interest.
If GUSD is invested in Launchpool and other financial products, users can not only obtain the returns from the product itself but also continuously enjoy the GUSD minting returns.
05 GUSD’s 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 and also receive additional project token rewards.
- Spot Trading: Gate has launched multiple 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. When users engage in leveraged trading, they can use GUSD as margin to enhance capital efficiency without sacrificing returns.
- Flexible Wealth Management: GUSD is also included in Yubi Treasure as a flexible wealth management product, further expanding the use cases for users’ funds.
06 Transparency and Security Guarantee
In the cryptocurrency market, transparency and trust are the most concerning issues for users. GUSD has made clear commitments in these two areas:
Proof of Reserves: Gate commits to publicly disclose proof of reserves on the product page, showing certification documents issued by the custodian bank or partner institutions.
Full asset backing: All GUSD issuance will be supported by sufficient real-world assets and will be subject to public verification to ensure transparency and security of the assets.
Flexible Redemption: Users can exchange GUSD back to USDT or USDC at a 1:1 ratio at any time, ensuring the liquidity of funds.
Future Outlook
Official data shows that the on-chain supply of GUSD has surpassed $168 million shortly after its launch, indicating a strong market demand for this type of "appreciable stablecoin."
For investors, GUSD has found a balance between "stability" and "returns." It ensures the safety of the principal while achieving steady asset growth through a daily compound interest mechanism.
Whether you are a crypto novice or an experienced player, GUSD is worth being an important component in your asset allocation, helping you maintain stability amidst market fluctuations while pursuing higher returns on a stable income.
