DeFi Protocol Gyroscope Launches Income Version of Stablecoin, Targets Yield of More Than 10 Percent

DeFi protocol Gyroscope said Thursday that it launched a new earnings version of its stablecoin, CoinDesk reported. The team said, “Savings GYD (or sGYD) aims to pay token holders an annualized return of 12%-15%, depending on market conditions. Revenue comes from token-backed assets that are held in segregated vaults for various DeFi investment strategies.” The team added that the agreement “may be able to generate” additional revenue from fees on the high-yield liquidity pools launched earlier this year.

Gyroscope hopes to entice DAOs to allocate a portion of their funds to sGYD for revenue. The launch of the stablecoin coincides with the start of the next phase of the protocol's points-earning program, SPIN. During “Season 2,” users will be able to choose between earning natively with benchmark points or forgoing earnings to increase rewards. gyroscope advertises its dollar-pegged tokens as a “24/7” stablecoin, which is designed to protect investors from stablecoin failures. Gyroscope advertises its USD-pegged token as a “24/7” stablecoin and aims to protect investors from stablecoin failure. It supports its value through multiple stablecoins deployed in certain strategies, such as sDAI and USDC, which generate returns in Flux, and automated market making (AMM) strategies such as LUSD and crvUSD.