GUSD: The Note-Like Evolution of Stablecoins

A New Positioning for Stablecoins

Traditionally, stablecoins have focused on maintaining a fixed exchange rate with fiat currencies to facilitate payments and store value. GUSD seeks to advance this role further—not only preserving value, but also introducing the concept of on-chain instruments that combine principal repayment with maturity returns. This innovation transforms holding GUSD into an experience that merges the features of a payment tool and a fixed-term yield asset.

Asset-Backed Support

GUSD’s returns are tied to Real World Assets (RWAs), such as short-term U.S. Treasury bills. This design ensures GUSD’s stability is anchored not just by cash reserves or pegging, but by actual financial instruments that generate coupon payments and principal repayments. As a result, on-chain assets more closely reflect the economic logic of traditional notes.

Two Access Channels

Gate offers users two primary avenues to acquire GUSD:

• Spot Exchange: Instantly swap USDT for GUSD on Gate’s spot market—ideal for users seeking rapid portfolio adjustments or short-term trades.
• On-Chain 1:1 Minting: Holders of USDT or USDC can mint GUSD on-chain at a 1:1 ratio, providing a flexible option for asset allocation or integration into wealth management strategies.

Once minted, GUSD can be used for trading, margin, or invested in various financial products, supporting a wide range of scenarios.

Start minting GUSD now and earn daily annualized yield: https://www.gate.com/staking/GUSD?gt_disable_intercept_jump=1

Yield Distribution Mechanism

GUSD does not follow a conventional daily interest payout model. Instead, yields are calculated and distributed in full at maturity or upon redemption. For instance, if you mint GUSD with 100 USDT and the underlying assets generate a 20% return during the holding period, you could receive approximately 120 USDC upon redemption (actual amounts may be adjusted for taxes or fees). This makes GUSD functionally similar to holding an on-chain bond or promissory note.

Ecosystem Incentives and Staking Options

To drive user participation, Gate has developed a range of incentives for GUSD:

• Staking Pools: Earn stable returns by staking GUSD and collecting baseline interest.
• Additional Token Rewards: Special events may offer bonus token incentives (actual annualized rates and event details subject to official Gate announcements).
• Ecosystem Integration: Over time, GUSD is expected to connect with lending, Launchpool, CandyDrop, and other features, enabling holders to earn returns and engage in community activities.

Key Differentiators from Other Stablecoins

GUSD’s design incorporates several distinct advantages:

1. Value Accrual Over Time — Returns are realized based on the holding period, not just maintenance of face value.

2. Dual-Token Minting Support — Both USDT and USDC can be used to mint GUSD, enhancing flexibility for users.

3. Unified Utility Ecosystem — Trading, margin, wealth management, and staking operate seamlessly within a single ecosystem.

4. Commitment to Transparency and Compliance — Gate is progressively disclosing reserve and custodial details, moving toward fully verifiable asset backing.

These features position GUSD not only as a payment medium, but also as a yield-generating dollar asset for diversified portfolios.

Upgraded Yield Distribution

Recent improvements ensure that all GUSD acquired through spot trading, wealth management, or lending automatically participate in yield distribution. When GUSD is invested in Launchpool or similar products, both minting yields and product yields are activated simultaneously, enhancing capital efficiency.

Liquidity and Redemption Mechanism

Users can redeem GUSD for USDC at any time, then exchange USDC for USDT or other tokens as needed. The process is designed for minimal friction and high liquidity, though users should be aware of potential fees or settlement delays depending on the transaction type.

Risk Disclosure

This material is not an offer, solicitation, or investment advice. Always assess risks thoroughly and seek professional advice before investing. Gate may restrict or prohibit services in certain jurisdictions. Please consult the User Agreement for details.

User Agreement: https://www.gate.com/legal/user-agreement

Conclusion

GUSD integrates the logic of principal repayment and maturity returns from traditional notes into the stablecoin model, combining RWA-backed security with blockchain flexibility. If Gate continues to advance transparency and compliance, GUSD has the potential to become a benchmark stablecoin in the Web3 ecosystem, delivering real-world asset yield characteristics.