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. All these assets can be converted to GUSD at a 1:1 ratio. Simply holding GUSD currently 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. Returns are calculated daily with compound interest and automatically reinvested, meaning the user doesn't need to perform any further transactions; the return continues to accumulate. The return source consists of Gate's own ecosystem revenues, real-world assets linked to treasury bonds, and high-quality, stablecoin-backed return tools.

What's particularly noteworthy is that GUSD can be integrated into active investment strategies, moving beyond being just a passive return tool. When users utilize GUSD in popular products like Launchpool, they can earn both the return from that product and the daily compound return of GUSD simultaneously. This offers the possibility of investing the same capital in multiple yield tiers, like running a single asset simultaneously in different earning channels.

There is also flexibility on the withdrawal side; GUSD can be withdrawn at any time, which is a key feature that distinguishes it from classic locked futures products. Users can continue to earn daily returns on their balance while actively holding positions in the market.

It should be noted that the yield rate is not fixed; the displayed 3.8% annual rate is a current figure and may change over time depending on market conditions, so it is recommended to check the current APR page before participating. Users in the UK and some restricted regions cannot benefit from 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 different stablecoin assets to mint GUSD directly without any conversion, and the ability to use GUSD in conjunction with other investment products like Launchpool offers the possibility of creating multiple sources of return from a single pool of capital.

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