As a seasoned analyst with years of experience in the crypto space, I find the latest move by DeFi protocol Gyroscope intriguing. The introduction of “Savings GYD” (sGYD) offering yield-generating stablecoins is a bold step that could potentially disrupt the market. The ability to generate yields while maintaining stability is a promising proposition, especially in an era where high-yield investments often come with significant risks.


Fintech company Gyroscope announced on Thursday they will launch an updated, yield-producing variant of their stablecoin.

The abbreviation sGYD is intended to provide token holders with a return of 12%-15% per year, which may fluctuate based on market circumstances, as stated by the team. This income is generated from assets represented by tokens that are kept in separate vaults across diverse DeFi investment methods. The protocol might also acquire extra revenue through fees from its high-yield liquidity pools, which were launched earlier this year, according to the team.

Gyroscope aims to entice Decentralized Autonomous Organizations (DAOs) to designate a portion of their funds in sGYD, allowing them to generate returns on their investments.

As an analyst, I find it intriguing that the launch of the stablecoin aligns perfectly with the commencement of our protocol’s second phase of the SPIN points earning program. In this new season, users will have the freedom to decide whether they want to earn native yields from their baseline points or enhance their rewards by opting out of the yield option.

Fixed-price digital currencies known as Stablecoins, which are largely connected to the U.S. dollar, play a significant role in facilitating trading and transactions within blockchain networks. The newer generation of these Stablecoins that offers returns to its users (through yield) is gaining more popularity.

Mountain Protocol’s USDM is supported by U.S. Treasuries and distributes bond yields to its token holders differently compared to Tether’s USDT. Instead, Maker’s stablecoin, DAI, shares the earnings from its real-world asset backing and decentralized finance lending operations with those who save their DAI (sDAI). On the other hand, Ethena’s “synthetic dollar” USDe generates income through funding rates using a carry trade strategy, then distributes this revenue to users who lock up (stake) the token within the protocol.

Gyroscope promotes its U.S. dollar-linked token as a versatile “all-season” digital coin, designed to safeguard investors against the collapse of other stablecoins. It maintains its worth using various stablecoins employed in specific strategies, such as earning interest through sDAI and USDC within Flux, and also offers support for automated market-making (AMM) methods like LUSD and crvUSD.

1. The project successfully secured $4.5 million in venture capital, with leadership from Galaxy and Placeholder Venture Capital. As of now, DefiLlama indicates that the platform holds approximately $29 million in assets.

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2024-08-08 17:14