What is GUSD?

GUSD is described as a flexible, principal-protected investment product that distributes rewards daily. Its returns are said to be sourced from Gate ecosystem revenue, tokenized treasuries or other real-world assets, and stablecoin-backed yield assets, with the aim of relatively stable yields in both bullish and bearish market conditions. The APR is described as dynamically adjusted based on those revenue and asset sources.

GUSD is fully tradable and can be used as collateral. The description states that staking USDT or USDC mints GUSD as a yield-bearing certificate representing an investment value, not ownership of underlying assets. On redemption, GUSD is converted to USDT or USDC at a 1:1 ratio, with redemption fees applying.