GYD is live on Ethereum Mainnet
GYD, the highly anticipated all-weather stablecoin designed by seminal stablecoin design PhD researchers, launches on Ethereum Mainnet today. Marking the first innovation in scalable reserve backed stablecoin designs since Fei in 2021, GYD is designed to be fully backed by a basket of assets with fundamental innovations in risk control built in at the protocol level.
A recent research report from Bernstein reported estimates that the stablecoin market will grow from $125B today, to $2.8T in the next five years. Amidst this growth, however, the risks of holding stablecoins have become increasingly tangible, most recently when USDC depegged in the SVB crisis in March. Right now, it’s nearly impossible to name a stablecoin that hasn’t crashed before.
GYD protects against the risks of holding stablecoins, putting risk control on autopilot in a decentralized, non-custodial way. GYD introduces innovations including risk diversification rules, optimized minting and redemption bonding curves that guide the protocol on how to use reserve assets to maintain stability, and a new resilient oracle and circuit breaker system.
GYD’s mainnet launch builds on Gyroscope’s successful launch of its E-CLPs in May. Gyroscope’s E-CLPs have been up to 75% more efficient than Stableswap, greatly improve capital efficiency for LPs, are highly customizable, and don’t require active position management. Since their launch earlier this year, E-CLPs have surpassed 29m in TVL and 280m in total swap volume.
Gyroscope’s stability mechanism innovations together with its E-CLPs are aimed to make Gyroscope maximally resilient to the long tail of risks and attacks in crypto while unlocking new streams of risk-controlled yields in DeFi.
“There is a critical gap in innovation affecting the majority of decentralized stablecoins that exist today — mechanisms for backing stablecoins with protocol-owned reserve assets have not evolved, said Ariah Klages-Mundt, Gyroscope Cofounder. “These mechanisms have proven critical to scaling stablecoins, with 57% of Dai being backed this way. They have also been problematic, causing Dai to depeg violently in the USDC crisis. Despite a resurgence in innovation in other areas of stablecoins this year, reserve backed designs have so far been left behind. Gyroscope brings to market the innovation needed to fill this gap in stablecoin mechanism design and to securely scale decentralized stablecoins from here on out.”
There are many ways to get started with GYD. It may be minted and redeemed via a frontend in permitted jurisdictions, directly through the smart contracts, or purchased on Balancer, 1inch, CowSwap, 0x, and other swap routers who integrate Gyroscope’s E-CLPs. GYD may be used out of the gate to attain a better risk-adjusted-yield strategy for stable-stable liquidity providers by LPing across GYD E-CLP pools. This LP strategy serves to segment the risks of individual stablecoin depegs while providing stablecoin yield exposure, providing a new edge in a current $1.5b+ market.
Lastly, Gyroscope includes a novel governance system. Selected individuals who have participated actively in DeFi governance and research are invited to participate by claiming a Councillor NFT. Further, the select associated DAOs of Balancer, Aura and Beethoven X, which already build deeply together with Gyroscope, are also invited to participate directly in governing the Gyroscope protocol.
“GYD is not a toy, but a stablecoin with aspirations to sit alongside Maker’s DAI in the years to come. The team’s focus on resilient design, capital efficiency, and deep liquidity, comes from having researched and experimented with DeFi for as long as it’s been a concept, and correctly anticipating failure modes of some of crypto’s most notorious stablecoins, such as Luna’s UST. And though it’s still early, rapid protocol growth since launch would suggest that Gyroscope is onto something.” — Chris Burniske
About Gyroscope
Gyroscope is a decentralized stablecoin featuring a novel all-weather stablecoin design combined with a more efficient stablecoin DEX. The initial development team of the Gyroscope protocol is FTL Labs, comprising PhDs Ariah Klages-Mundt, Lewis Gudgeon and Daniel Perez, who authored seminal papers on stablecoin design and DeFi risk, with backing led by Placeholder and Galaxy. Gyroscope’s stablecoin Gyro Dollars (GYD) was built with a novel design system to fill a critical gap in the secure scalability of stablecoins. For more information, please visit https://gyro.finance/ or review the documentation.
