sGYD is expected to launch with 12-15% APRs, providing boosted yield on stablecoins with mitigated risk due to Gyroscope’s automated risk control innovations.

7 August 2024 – Gyroscope, the all-weather decentralized stablecoin and stablecoin superliquidity protocol on Ethereum and L2s, today announced its new yield-bearing decentralized stablecoin sGYD. sGYD, or ‘savings GYD’, is designed to provide tokenized access to the highest risk-adjusted yield in DeFi. The sGYD launch coincides with Phase 2 of the Gyroscope’s SPIN points system, which doubles down on yield amplification in Gyroscope. 

sGYD yield is facilitated by the Gyroscope system. Gyroscope’s stablecoin GYD is built to be non-custodial and fully backed by a diversified reserve of assets determined by Gyroscope governance – currently a mix of major stablecoins like DAI, USDC, USDT, LUSD, and crvUSD – deployed in risk-segregated vaults that generate yield. In the future, Gyroscope may be able to source additional revenue from protocol fees from its efficient class of liquidity pools, an underlying and rapidly growing part of the Gyroscope ecosystem. In the current environment, the variable yield on reserve assets can be expected to reach 8-9% APRs, with sGYD yields expected to launch with 12-15% APRs with an amplification rate related to the proportion of GYD staked into sGYD.

Gyroscope’s yield-bearing stablecoin framework also includes a mechanism to direct protocol revenues to incentivize GYD liquidity pools. This mechanism was built to provide a self-sustaining force for scaling GYD liquidity and works in combination with Gyroscope’s Rehype pools, which are the most efficient liquidity pools on the market due to the fact that they uniquely capture both concentrated liquidity yields and Aave yields. Rehype pools have grown over 345% in the last month and can be expected to scale even faster with the introduction of yield-bearing GYD.

sGYD is built as a simple solution for stablecoin users as well as DAO treasuries, where it provides a one-stop access to diversify asset and yield source exposures at a competitive APR. sGYD can be minted via a frontend in permitted jurisdictions and directly through the smart contracts.

The yield-bearing GYD launch coincides with Phase 2 of the SPIN points system to double down on yield amplification in Gyroscope. In SPIN Phase 2, Gyroscope users can choose among different earning levels. Gyroscope users who prefer native yield rates, such as through sGYD or incentivized LP positions, remain eligible for a baseline SPIN rate whereas users who prefer earning SPIN can opt to forgo native yield rates and earn a highly boosted SPIN rate. In addition, users who decide to stake LP shares in Gyroscope’s governance system will earn an even higher SPIN boost. The net effect is to amplify native yield rates for those users who prefer native yields and simultaneously amplify SPIN rates for those users who prefer to earn ownership in the protocol leading into Gyroscope’s token distribution. Upon SPIN completion, the results will be passed on to the Gyroscope Foundation which is responsible, among others, for community development and distribution.

About Gyroscope

Gyroscope is a decentralized stablecoin featuring a novel all-weather stablecoin design combined with a more efficient stablecoin DEX. 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’s stablecoin Gyro Dollars (GYD) was built with a novel design system to fill a critical gap in the secure scalability of stablecoins. GYD is live on Ethereum, Arbitrum, and Polygon zkEVM and Gyroscope’s E-CLPs are live on Ethereum, Arbitrum, Polygon PoS and zkEVM, Optimism, Base, and Gnosis chain. For more information, please visit https://gyro.finance/ or review the documentation.

Disclaimer. The SPIN points system 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 SPIN earned in this system are part of a promotional campaign and are not guaranteed to be converted into any form of value. The information provided above regarding sGYD 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 sGYD. It is the responsibility of each participant to understand the risks of the SPIN system and sGYD and to comply with all applicable laws and regulations in their jurisdiction. The SPIN system and sGYD are not available in the United States, United Kingdom and selected other jurisdictions. See the Terms of Service for more information.