About Gemini Dollar (GUSD)

Gemini Dollar (GUSD) is a 1:1 USD backed stablecoin issued by leading cryptocurrency exchange Gemini. Billed as a 100% reserve backed asset, each Gemini Dollar is backed by exactly $1 USD for which it can be redeemed at any time. Similar to other fiat-tracking assets GUSD can be utilized within various on-chain environments to transact on decentralized exchanges, provide liquidity, and earn interest via digital lending platforms. However, unlike many of its decentralized, algorithmically backed peers GUSD is actively regulated and insured by various centralized systems.

All USD reserves reside in one of three places: the vaults of FDIC insured banks, money market funds, and US Treasury Obligations. Per documentation, this dynamic provides GUSD with a distinct regulatory advantage over its competitors. Likewise, GUSD’s reserves are currently audited on a monthly by independent accounting firm BPM LLP. As of September of 2022, GUSD is supported by a range of Ethereum-based applications including AAVE, 1inch, Balancer, and Yearn Finance.

GUSD is currently the 12th largest stablecoin by market capitalization ($308 million). 

When was GUSD created and how much was it worth?

GUSD is the native stablecoin of Gemini, a US-based cryptocurrency exchange created by brothers Tyler and Cameron Winklevoss in 2014. The pair are commonly noted for their years long feud with Mark Zuckerberg, who’s believed to have stolen the idea for Facebook from Connect.U, a Winklevoss-founded social media platform.

GUSD was launched in September of 2018 and experienced a brief period of volatility following its distribution before stabilizing to its $1 price target shortly thereafter. Apart from a brief de-peg in April of 2020 GUSD has maintained a price of $1 ever since.

How is the price of GUSD determined?

GUSD is a USD-pegged asset and operates to maintain a consistent price of $1. Unlike its less secure peers, GUSD is backed by 100% USD reserves and can be redeemed for an equal value of its parent fiat at any time, increasing price stability.

Why does GUSD have value?

As a fiat-tracking asset, GUSD’s value lies in the fact that it allows blockchain users to take risk off the table while keeping their funds on chain. GUSD’s compatibility with top yield-baring applications including AAVE and 1inch would also seem to offer a strong value proposition.

Is GUSD secure?

GUSD is ERC-20 compliant and backed by a number of leading Ethereum wallets and exchange-based storage solutions.

All token reserves are audited by an independent accounting firm (BPM LLP) on a monthly basis. GUSD is 100% USD reserve-backed meaning each unique token corresponds to an equal amount of USD, for which it can be redeemed at any time.

What are the main benefits of GUSD?

• GUSD is 100% USD reserve backed.
• GUSD is supported by a range of leading DeFi platforms including AAVE, 1inch, and Balancer.
• GUSD’s reserve are publicly audited by an independent account firm on a monthly basis

What do critics say about GUSD?

Reserve obligations in money market funds may be a point of contention for some.