Gyroscope’s Governance token GYFI launches with TVL at ATH of 62M, pools growing organically with 40-150% swap APRs, and protocol revenue growing to above $2M annualized.

Tuesday, 18 March 2025 – Gyroscope, a non-custodial liquidity engine that combines more efficient passive concentrated liquidity and stablecoin yield, today launched its governance token, GYFI. The token launch comes as Gyroscope’s decentralized finance products show significant traction with $4.1B annualized YTD volume and $3.1M annualized swap fees, which has grown 550% quarterly (data available here). Gyroscope’s novel revenue model captures both high organic swap fees from volatile pairs and stablecoin yields, unlocking efficiencies that set it apart from traditional DEX or stablecoin models. This new revenue playbook has grown Gyroscope’s protocol revenue to above $2M annualized.

GYFI

GYFI is the Gyroscope Protocol Governance token and can be staked in the decentralized Gyroscope governance system in exchange for voting power. GYFI is one of several ways to obtain voting power, as Gyroscope’s pluralistic governance design aims to include multiple stakeholders.

Further benefits for GYFI holders are also possible, such as a buy-and-burn mechanism that governance may consider activating in the future in combination with a Conditional cashflows model that can receive rewards related to system health.

GYFI is being launched now at a time when Gyroscope’s decentralized governance is live and Gyroscope’s model is now proven and will serve as a tool to scale up organically sustainable growth in the system.

Eligibility

The eligibility of GYFI has been decided through votes in Gyroscope Governance and includes but is not limited to:

• Participants in the SPIN points campaign

• Founding Member NFT holders

• Participants in Gyroscope Galxe campaigns

• Other community members

While claiming users are able to select the proportion of their GYFI allocation they want to claim as liquid or lock in exchange for more GYFI. Users are able to lock their GYFI for 9 months to earn 40% more GYFI or 18 months to earn 150% more GYFI. 

Gyroscope users can continue to earn GYFI after the launch as indicated on the Gyro frontend app. Eligibility criteria apply.

Improved Efficiency in Passive Pools

Gyroscope is driven by novel liquidity pools that make the arena of highly efficient concentrated swap yields more efficient and accessible to normal passive users. Gyroscope’s liquidity infrastructure sports a TVL of $62M, has processed $3.7B in volume, and regularly achieves the highest capital efficiencies on the market of 100-1000% volume/TVL. Users can choose between pools for Volatile Pairs (e.g., ETH/USD pairs), which have higher risk and high reward, and Stable Pairs, which have lower risk but moderate rewards. Gyroscope pools are built into Balancer as custom pool types and integrated with Aave for optional rehypothecation.

Volatile Pairs

Volatile pair pools enable users to earn yield from trades occurring within a specified price range (e.g., ETH/USD between $1800 and $3300) with the simplicity and protections of a passive pool. Organic APRs have ranged from 40 to 150%. Especially for passive LPs, these pools have outperformed Uniswap and Aerodrome.

As prices evolve, users may move to different range pools with low operational burden (no need to recalibrate positions), guided by an incentive system that shifts pool rewards to the best pool. A coming dynamic pool version will automate this process for users. A new pool type will further improve volatile pairs efficiency by 100% by concentrating liquidity across 3 assets (e.g., ETH/BTC/USD), which is not possible in DEXs like Uniswap.

These pools benefit both liquidity providers and Gyroscope. For Gyroscope, they have generated around 30 cents for every 1 dollar of TVL in annualized protocol fees, with virtually no extra incentives needed after bootstrapping.

Superliquid Settlement Asset Earns Extra Yield

Gyroscope’s stablecoin GYD serves as an optional settlement asset for the stablecoin component of Volatile and Stable pairs. Instead of splitting liquidity across multiple stablecoin pools, (e.g., USDC, USDT, sUSDe) assets can be paired with on-demand minted GYD, which acts as a central hub-and-spoke asset. Highly efficient order routing is made possible by GYD’s uniquely high stability metrics and ability to turn over very high volumes relative to its size.

GYD pairings also provide the efficiency advantage of the yield of the stablecoin (often 10-15% APR), which makes GYD well-placed to grow organically with volatile pairs that combine swap fee and stablecoin yield streams.

Market Opportunity

In the current market size, Gyroscope’s volatile pair pools could be scalable by 100x+ (e.g., comparable with Aerodrome, Uniswap, etc for relevant pairs), with GYD’s pairing asset usage similarly scalable. If realized, this would generate significant revenue in a highly efficient and organic manner. Gyroscope’s model is also strategically positioned to benefit when the market itself grows, e.g., when FX volumes come onchain.

“Gyroscope’s innovations built on Balancer have been nothing short of groundbreaking. The product market fit of ECLPs for correlated assets was natural, and the non-correlated use case has become a default configuration for dominant capital efficiency. Liquidity providers and the protocol are mutually benefited by Gyro’s nuanced approach to fungible liquidity making provision simple, efficient, and passive. It has been an absolute pleasure for the Balancer team to have empowered Gyroscope to reach this level of success, and we look forward to working together further into their bright future. “ -- Zen Dragon, Balancer

About Gyroscope

Gyroscope is a non-custodial liquidity protocol that combines efficient passive concentrated liquidity and stablecoin yields. The initial development team of the Gyroscope protocol is FTL Labs, comprising PhDs Ariah Klages-Mundt, Lewis Gudgeon and Daniel Perez, who authored seminal papers on stablecoin design and DeFi risk, with backing led by Placeholder and Galaxy. Gyroscope combines several mechanisms designs that were also adopted or seriously considered by large DeFi protocols, including but not limited to: (1) dual governance : Lido, (2) rehypothecated asset pools : Balancer / order routers, (3) stablecoin pricing mechanism : MakerDAO/Sky. Gyroscope is live on Ethereum, Arbitrum, Base, Polygon PoS and zkEVM, Avalanche, Optimism, Gnosis chain, and Sei. For more information, please visit https://gyro.finance/ or review the documentation.

Disclaimer

GYFI token is a promotional feature and should not be considered financial advice or an investment guide. Participation in this system is voluntary and at the discretion of the participants. The information provided above regarding Gyroscope products is for informational purposes only and should not be considered financial advice. Users should conduct thorough research and consult with a financial, legal and technical advisor before interacting with Gyroscope and GYFI. It is the responsibility of each participant to understand the risks of GYFI, GYD, and Gyroscope pools and to comply with all applicable laws and regulations in their jurisdiction. GYFI are not available in the United States, United Kingdom and selected other jurisdictions. See the Terms of Service for more information.