The stablecoin market is undergoing a quiet transformation. While USDT and USDC continue to dominate due to their scale and compliance, the GUSD launched by Gate Exchange in August 2025 has drawn market attention with its "dual yield" model, quickly surpassing an on-chain supply of 168 million USD.
Unlike traditional stablecoins, GUSD is not just a medium of exchange, but an innovative digital dollar financial certificate that combines the returns of real-world assets (RWA) with the returns of the crypto ecosystem, rewriting the value logic of stablecoins.
01 Market Transformation: The Evolution of Stablecoins from Trading Tools to Yield Assets
Stablecoins serve as the cornerstone of the crypto market, primarily acting as a medium of exchange and a store of value for a long time. According to CoinMarketCap data, as of early 2025, the overall market value of stablecoins remains stable at over 160 billion USD, accounting for about 15% of the total market value of crypto assets.
This market is dominated by USDT and USDC, with the former relying on scale advantages and the latter winning through compliance. However, both of these stablecoins share a common limitation — they do not generate returns on their own.
In recent years, the global high interest rate environment has reshaped the financial landscape, with U.S. Treasury yields remaining relatively high for an extended period. Traditional investors have turned to the bond market in search of stable returns, while the crypto world lacks corresponding low-risk yield products.
It is this market gap that has created the conditions for the emergence of innovative products like GUSD.
02 GUSD Core Mechanism: Dual Yield Structure and Operating Model
The essence of GUSD is an innovative digital dollar financial certificate that is pegged to the USD at a 1:1 ratio. Users can exchange GUSD on the Gate platform using USDT or USDC at a 1:1 ratio.
Diversification of income sources
The uniqueness of GUSD lies in its yield structure. From the moment of minting, GUSD holders can enjoy an annual yield of 4.4%.
This income comes from two parts:
- Interest income from underlying U.S. Treasury bonds
- Revenue sharing of the Gate ecosystem
Yield stacking mechanism
A more appealing feature of GUSD is its yield stacking mechanism. While users hold GUSD to earn a base annual yield, they can also use GUSD to participate in liquidity mining on Gate Launchpool to obtain additional returns.
Official data shows that some GUSD mining pools have recently had quite impressive annualized yields, such as the AVNT pool reaching 16.32%, the U pool reaching 16.85%, and the BOT pool reaching 16.07%.
This dual revenue model of "basic income + mining income" has created a unique differentiated advantage for GUSD in the stablecoin sector.
03 Application Scenarios: From Simple Coin Holding to Full Ecosystem Participation
GUSD has been deeply integrated into Gate’s ecosystem, expanding various application scenarios that far exceed ordinary financial products.
Flexibly Participate in Launchpool
In the Gate Launchpool, GUSD has become an important participation asset. Users staking GUSD can earn the original annualized yield of 4.4%, and additionally receive project token rewards, with some activities estimated to have an annualized yield rate as high as 365%.
Comprehensive trading features
Spot trading is another important application scenario for GUSD. Gate has launched multiple trading pairs including GUSD/USDT, BTC/GUSD, and ETH/GUSD.
This means that users can directly use GUSD to purchase other cryptocurrencies without having to exchange it back to USDT or USDC first, greatly improving the efficiency of fund usage.
Diverse financial options
GUSD can also be used as collateral for a unified margin account. Users can use GUSD as margin when engaging in leverage trading, increasing capital efficiency without sacrificing returns.
In addition, GUSD is also included in Yubibao as a demand financial product and can participate in various activities on the platform.
04 Transparency and Security: The Trust Foundation of GUSD
In the crypto market, transparency and trust are the most concerning issues for users, and GUSD has made clear commitments in these two areas.
Reserve Proof Mechanism
Gate promises to publicly disclose reserve proof on the product page, showcasing proof documents issued by custodial banks or partner institutions, ensuring that each GUSD in circulation is backed by sufficient real-world assets.
Flexible Redemption Mechanism
Users can exchange GUSD back to USDT or USDC at a 1:1 ratio at any time. Gate offers two redemption methods:
- Standard Redemption (0.05% fee, credited within D+3 days)
- Fast redemption (0.1% fee, credited within 10 minutes)
These two solutions allow users to make flexible choices between cost and time according to their own needs.
05 Industry Significance: How GUSD Reshapes the Stablecoin Competitive Landscape
The emergence of GUSD represents a rewriting of the value logic of stablecoins, bringing new possibilities to the entire crypto market.
Redefining the value logic of stablecoins
For a long time, the stablecoin market has been dominated by USDT and USDC, with the former relying on scale advantages and the latter winning through compliance. Meanwhile, GUSD has introduced a "yield stacking" model, shifting the competitive focus from scale and compliance to application and yield.
Provide new "yield anchor"
In a traditional financial environment with high interest rates, GUSD allows crypto users to achieve robust returns comparable to U.S. Treasury bonds without leaving the blockchain world. This could attract more traditional funds into the crypto market, bringing new growth momentum to the industry.
Important Practices of RWA Tokenization
GUSD is also an important practice in the tokenization trend of RWA (real-world assets). It successfully brings traditional assets like U.S. Treasury bonds onto the chain in the form of encryption certificates, providing a reference framework for more types of traditional assets to be brought onto the chain in the future (such as corporate bonds, real estate, etc.).
Future Outlook
The competition in the stablecoin market has shifted from "scale" and "compliance" to "application scenarios" and "revenue models." The "dual-revenue" model of GUSD is a typical representative of this transformation, as it is no longer just a medium of exchange, but has become an asset class that combines stability and growth.
In the future multi-polar landscape of the stablecoin market, GUSD has established its position in the niche of yield stacking. For investors, in the highly volatile crypto market, GUSD provides a rare safe haven—allowing participation in market growth while enjoying the stable returns of traditional finance.
