GUSD: Gate introduces a new stable financial management option based on US Treasury bonds.

GUSD: An Innovative Bridge Connecting TradFi and the Encryption World

Investors seeking stable returns in the encryption market now have a brand new option. The GUSD launched by Gate is not an ordinary stablecoin, but a financial certificate backed by real-world assets (RWA, Real-World Assets) such as U.S. Treasury bonds.

Exchange the USDT or USDC in hand for GUSD, which means that funds no longer remain only in the volatile cryptocurrency market, but are indirectly allocated to traditional low-risk asset portfolios, such as U.S. Treasury bonds. Gate is building a bridge to bring the stability of TradFi into the crypto world, allowing blockchain technology to truly empower more physical assets and provide users with safer and more predictable financial management methods.

Core Advantages and Differentiation of GUSD

Among the many encryption financial products, the reason why GUSD stands out is that it combines the security of TradFi with the flexibility of blockchain.

Compared to the excess coin treasure or current financial management of exchanges, the income source of GUSD is clearer, coming from the interest on U.S. Treasury bonds and part of Gate's ecological income. Although the yield of the excess coin treasure can sometimes be very high (for example, over 10% annualized), its interest rate is highly dependent on market conditions and lending demand, fluctuating dramatically; today it may have high returns, but tomorrow it could drop instantly. In contrast, the yield of GUSD is relatively stable, with an annualized rate of about 4.4% before the deadline, coming from low-risk assets like U.S. Treasury bonds, allowing investors to obtain sustainable and predictable cash flow.

Compared to DeFi staking on the chain, the differences with GUSD are also very apparent. The yields in DeFi can be extremely high, but they also come with risks such as smart contract vulnerabilities, impermanent loss, or Rug Pull; whereas the risks of GUSD are more aligned with traditional financial markets, such as interest rate fluctuations or the market price fluctuations of US Treasuries, making them relatively easier to assess and manage.

The fund flexibility of GUSD is relatively high, allowing users to choose different rates and arrival speeds through the fast or standard redemption mechanisms provided by Gate. Compared to certain on-chain protocols that may require waiting for redemption cycles, GUSD offers a better user experience.

Finally, in terms of transparency, Gate is committed to providing reserve audit proofs as well as fund proofs from partner banks or custodians to ensure that the issuance of GUSD is fully backed by real-world assets, which offers a stronger trust foundation compared to products like the exchange's remaining assets; while GUSD is not as completely public as on-chain contracts in DeFi, it is more intuitive and easier for general users to understand.

The Operating Mechanism of GUSD

The entire participation process is quite simple:

1. Minting (Subscription) Users can stake their USDT or USDC on the Gate "Earn Coins on the Chain" page, and the system will exchange them 1:1 for GUSD certificates. This is not traditional on-chain staking, but rather converting encryption assets into financial certificates supported by RWA. Individual users can mint up to 5 million GUSD equivalent of USDT/USDC.
2. Earn profits After holding GUSD, the earnings will automatically begin to accumulate. The annualized return before the deadline is approximately 4.4%, mainly derived from US Treasury interest and a portion of the income from the Gate ecosystem, and will be automatically distributed to the user's spot account. This design allows the earnings to continuously compound, creating a stable cash flow.
3. Redemption When funds are needed, users can redeem GUSD for USDC. Gate offers two options:

• Quick Redemption: Fee 0.1%, credited within approximately 10 minutes.
• Standard Redemption: Service fee 0.05%, credited on T+3 days, more suitable for situations where funds are not urgently needed.

This design balances flexibility and cost considerations, allowing investors to choose freely according to their needs.

Why choose Gate's GUSD?

Choosing a financial product is actually also choosing the underlying operating platform. As an exchange that has long been deeply involved in the encryption industry, Gate has accumulated a good reputation and a large user base, with asset management scale exceeding 4 billion USD, providing a solid guarantee for the operation of GUSD.

More importantly, Gate is committed to publicly providing proof of reserves and bank fund verification from partner institutions in future products, ensuring that every GUSD is backed by real-world assets. This transparency greatly enhances the credibility of the product, giving investors stronger confidence compared to similar products. Compared to RWA products from other centralized trading platforms, Gate's design is more flexible:

• More diverse minted currencies: Supports both USDT and USDC simultaneously, rather than being limited to a single currency.
• Redemption is more intuitive: the default exchange is USDC, which is more closely linked to the US dollar, enhancing the product's compliance and trust.

Frequently Asked Questions

Q1: What are the potential risks of holding GUSD? A: The main risk comes from traditional financial assets, such as the interest rate fluctuations of US Treasuries, but the overall risk is much lower than that of the encryption market; another potential risk is the credit risk of custodial institutions, which Gate will manage through the screening and transparent disclosure by cooperating institutions.

Q2: Why not choose Gate Yu Bi Bao? A: Yubibao has higher returns, but the volatility is extremely high. The design of GUSD is to provide more stable and predictable returns, suitable for investors who seek stability and long-term asset preservation.

Q3: Why can redemptions only be exchanged for USDC? A: Because USDC has higher compliance and transparency, it is closer to the digital dollar. Users can freely exchange USDC for USDT or other tokens on the platform after receiving it.

Q4: How to choose between quick redemption and standard redemption? A: It is recommended to redeem quickly when funds are urgently needed (0.1% handling fee, credited within 10 minutes); if not urgent, you can choose standard redemption (0.05% handling fee, credited within T+3 days).

Q5: Is there a purchase limit? A: Yes. Currently, individual users can mint up to 5 million USDT/USDC, while institutional users can increase this to 10 million USDT/USDC after certification.

If you want to learn more about Web3 content, click to register: https://www.gate.com/

Summary

The launch of GUSD provides investors in the encryption market with a truly robust new choice, backed by traditional low-risk assets such as US Treasuries, offering sustainable and transparent returns, as well as flexible minting and redemption mechanisms. For those looking for a low-volatility, reliable product that can maintain its value over the long term outside of the high-risk encryption market, GUSD is the key to安心收益.