According to CoinDesk, Gyroscope's gyro dollar (GYD), a novel stablecoin designed to protect crypto investors from stablecoin failures, has gone live on the Ethereum mainnet. The launch follows successful testing on Polygon and investments from venture capital firms Galaxy, Placeholder, and Maven 11. GYD aims to offer an alternative to centralized and algorithmic stablecoin designs by providing protection against de-pegging events. It is a decentralized, non-custodial stablecoin fully backed by reserve assets and features an algorithmic mechanism to maintain its price pegged to $1.
The token's design segments the risks of each backing asset by storing them in separate vaults. Backing assets include stablecoins deployed in strategies such as yield-generating sDAI and USDC in Flux, as well as automated market-making strategies like LUSD and crvUSD. The reserve has been designed to support a wide variety of strategies and assets as the stablecoin scales, according to the Gyroscope team. Targeting decentralized finance users, GYD features risk diversification rules, new oracle and circuit breaker systems, and optimized minting and redemption bonding curves to guide the protocol in managing reserve assets for price stability. The launch comes after a test period on Polygon and the opening of its liquidity pools, which attracted nearly $30 million in total value locked. The protocol raised $4.5 million in venture capital investment in a round led by Placeholder VC and Galaxy Ventures, with participation from Archetype, Maven 11, Robot Ventures, Balancer Labs co-founder Fernando Martinelli, and others.
