Gyroscope Launches Yield-Bearing sGYD Stablecoin Targeting DAOs, Caps SPIN Rewards at 500M

Yield-bearing Stablecoins are beginning to take centre stage as they bring a new element to one of the most popular verticals of the crypto space.

Decentralised finance protocol Gyroscope, backed by Michael Novogratz’s Galaxy Digital, has unveiled a new version of its GYD stablecoin.

The new yield-generating token, dubbed “Savings GYD” (sGYD), is designed for decentralised autonomous organisations (DAOs) and offers an annualised yield of up to 15%, subject to market conditions.

According to the announcement, the revenue paid to token holders is derived from the tokens backing assets, which are placed in segregated accounts belonging to separate investment portfolios. Gyroscope noted that it may also generate additional revenue through fees from high-yielding liquidity protocols launched earlier this year.

The company also announced the launch of phase two of its SPIN points-earning program, which began in March. Phase two allows users to choose between earning native yields with baseline SPIN or boosting their rewards and opting out of the yield.

“Gyroscope users who prefer native yield rates, such as through sGYD or incentivized LP positions, remain eligible for a baseline SPIN rate whereas users who prefer earning SPIN can opt to forgo native yield rates and earn a highly boosted SPIN rate.”

Gyroscope is also introducing a hard cap of 500 million SPIN for both phases one and two, the company stated in a blog post. “In order to preserve the scarcity and value of SPIN, we are limiting the total supply of SPIN to 500 million or less.”

Yield-bearing stablecoins are emerging as a key focus, adding a new dimension to one of the most popular verticals in the crypto space.

While leading stablecoin providers such as Tether (USDT) and Circle (USDC) continue to dominate transactions in the category, new entrants like Bima Lab’s Bitcoin-backed USBD are seeking to disrupt the space by offering token holders various earning opportunities.