#GUSDYieldRisesto3.8%

GUSD Becoming More Compelling for Stablecoin Holders I’ve been paying quite a bit of attention to my entire portfolio over the last few weeks. There simply aren’t a lot of high-conviction trading setups, so, instead of letting all my stablecoins gather dust, I’ve been trying to find ways that my stablecoins can start to bring me in a passive income stream that is also useful for the future. The new GUSD update definitely came into view of this goal. Being able to mint GUSD 1:1 against USDT, USDC or USD1 just makes getting started incredibly simple and on top of that, with the 3.8% APY and automatic daily distribution, you can start accumulating rewards without doing a thing.

But beyond just that yield, GUSD can also be used on Launchpool, Pre-IPOs and other wealth management products.

This allows you to really stack up multiple streams of passive income. That makes it incredibly efficient for active traders like me while waiting for opportunities to pop up in the market.

But it’s never just about the APY, right?

I never put money into an opportunity just based on the APY alone.

I want to understand how that yield is generated, whether it is sustainable and whether it’s consistent within my overall strategy of risk management. Consistency has a far higher value to me than the highest yield in town.

As crypto markets continue to mature, I think we are going to start to see more investors become more attentive to capital efficiency and not just price appreciation. Passive income won’t replace active trading, but it can boost overall performance in a portfolio by giving idle capital the ability to grow on its own in the background. I’m less interested in products like GUSD for chasing yield and more interested in how products can help me to construct a more balanced approach.

I think as crypto gets older, it will grow much more of this sort of product as we focus on more sustainable income. Would you be willing to use a stablecoin product which allows for a daily compounded distribution? Or is it preferable to keep your capital 100% liquid while you wait for a large trading opportunity to present itself?

‍#GUSD #GateSquare