#GUSDYieldRisesto3.8%

GUSD Now Offers 3.8% APY, Can Be Minted With USD1 As Well

We know what you’re thinking, stablecoin yield is usually a snooze-fest, but let’s be real, this one isn’t bad at all. Gate’s updated their GUSD minting mechanism to allow 1:1 minting with USD1 along with USDT and USDC. Meaning there are now three stable entry points into GUSD instead of just two, which should be more flexible if you hold any of the above.

That aside, the yield on GUSD is where this gets interesting. It’s backed by U.S. Treasury RWA plus a share of Gate’s ecosystem revenue and you can earn a whopping 3.8% APY, which compounds and is auto-distributed every day. No manual claiming and no juggling to maintain eligibility-you earn yield automatically as you hold.

However, the cherry on top, in my opinion, is that you don’t just have to have your GUSD sitting idly earning the base yield. It can also be used in other high-yield opportunities such as Gate’s Launchpool, Pre-IPOs and various other wealth management products. This means theoretically you can layer 3.8% real yield with an opportunity to earn even more from other avenues while redeploying capital without taking on unnecessary risk.

In all honesty, 3.8% yield from Treasury-backed stablecoin won’t make you a millionaire overnight and is not comparable to farming or leverage yields. It is more of a viable option to house your idle cash between active trades, especially given how volatile the past weeks have been, making it difficult to be consistently deployed in trading positions. You rather want your stablecoin earning actual yields from T-bill RWA rather than just stagnate.

Just a friendly reminder - I always advice people to thoroughly research on redemption procedures and understand the source of yield for any stablecoin before committing significant amount to it, whether RWA- backed or not. You need to actually dive into the actual documentation, not just the headline APY number.

Are you stacking your GUSD to use on the Launchpool, or pre-IPOs or simply using it as a parking spot while you figure out your next trade?

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@Gate_Square