Gate has introduced a significant update to its GUSD stablecoin product. It's now possible to mint GUSD with USD1, adding a third collateral option in addition to USDT and USDC, and all these assets can be converted to GUSD at a 1:1 ratio. Simply holding GUSD yields an annual return of 3.8%.

The logic behind GUSD is interesting, as despite being a stablecoin, it also functions as a principal-protected, flexible-term investment product. The yield source consists of Gate's own ecosystem revenues, real-world assets linked to treasury bonds, and high-yielding stablecoin-backed instruments. Users can use GUSD for both trading and collateral, and daily yield distribution begins on the second day after subscription and is credited to GUSD accounts by 12 PM UTC each day.

What's particularly noteworthy is that GUSD has moved beyond being just a passive yield-generating instrument and is now integrated into active investment strategies. When users utilize GUSD on platforms like Launchpool or pre-IPO investment products, they can simultaneously earn both the product's own return and the GUSD minting reward; Simple Earn and Dual Investment are excluded from this. This offers the possibility of investing the same capital in multiple return tiers, similar to running a single asset in two different earning channels simultaneously.

There is also flexibility in withdrawals; GUSD can be withdrawn at any time. Fast withdrawals are generally credited to the account within five minutes, while standard withdrawals are completed three days after the transaction date. Withdrawal fees are dynamically determined based on market conditions. It is recommended to monitor the current APR page for the return rate, as such rates can change over time depending on market conditions. Users in the UK and some restricted regions are not eligible for this service.

For users seeking stable returns through Gate, the main practical advantage is that the addition of USD1 support has expanded collateral options, allowing users holding various stablecoin assets to mint GUSD directly without any conversion. Furthermore, the ability to combine GUSD with other investment products offers the possibility of creating multiple sources of return from a single capital pool.

$GUSD $USD1

https://www.gate.com/en/announcements/article/100531
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