Gyroscope is off to a good start, raising $4.5 million in a seed round to create Gyro Dollars (GYD), a self-described all-weather stablecoin.
Gyroscope Raises $4.5M in Seed Funding
The seed round was led by Galaxy and Placeholder. Investment firms such as Maven11, Archetype, and Robot Ventures participated in the round, while Cyrus Younessi, Fernando Martinelli, Hart Lambur, and Will Villaneuva were among the angel investors. Leland Lee, Investor in Galaxy’s Venture arm, said:
“Gyroscope has developed a novel stability mechanism for stablecoins with its All Weather design approach that we believe can be a foundational element in the future of Stablecoins. Additionally, the team’s years of academic research studying stability in financial systems primes them for innovation in DeFi protocols.”
The beta version of the GYD Stablecoin is currently live on the Polygon network. Gyroscope has announced that the beta is open to everyone for testing, and the full release will continue on the Ethereum network. The new stablecoin created by the Gyroscope team was created with all the problems of the crypto ecosystem in mind. That’s why the team characterizes the new stablecoin as all-weather.
The founding team of the protocol consists of experts who have written articles on Stablecoins 2.0 the Decentralized Financial Crisis, and While Stability Lasts. The team came together to create a fully all-weather stablecoin by addressing the issues facing stablecoins, such as sustainability, risk, and adoption. Gyroscope co-founder Lewis Gudgeon said:
“At present, DeFi is missing a decentralized non-custodial stablecoin that effectively diversifies risk. Our aim is simple: to build a non-custodial stablecoin that actually works and isn’t algorithmic. It is designed to be fully backed. As opposed to custodial stablecoins such as USDC or USDT, Gyro Dollars are designed to offer a decentralized, non-custodial alternative with greater diversification in risk — if you care about the core value proposition of DeFi, you should want to use Gyro Dollars. At the same time, in contrast to algorithmic stablecoins which are undercollateralized by design, the Gyro Dollar is designed to be fully reserve backed. The Gyro Dollar provides a much needed new third path between centralized and algorithmic stablecoins.”
The company has introduced some innovations for the stablecoin, which it created taking into account the problems in the market. These innovations will greatly affect the sustainability and usage of the stablecoin. Before the beta test version ends, users can join the community and provide feedback on the use of stablecoin.
Full Reserve Design
The Gyroscope was created taking into account the DeFi risks, forcing it to layer the GYD reserve. This reduces DeFi risks by spreading them over a wider area. The GYD stablecoin is built with many of these risks in mind.
Dynamic Stability Mechanism
A mechanism to manage the mint and redemption of GYDs.
Concentrated Liquidity Pools
Customized AMM protocols, tested on the Polygon network since September.
New Oracle System
Gyroscope’s Oracle system is designed to maximize security.
GYD is designed as a completely decentralized stablecoin. Therefore, it requires decentralized governance. Unlike other DAOs, the protocol introduces an “Optimistic Approval” vote to be used in governance.
“The Gyroscope team has some of the earliest and most thoughtful researchers in DeFi who steadfastly focused on rigorous validation of their mechanism over many years. Ariah, Lewis, Daniel, and Steffen have written some of the highest cited papers in DeFi and have brought the utmost care and detail when reasoning about protocol safety and user security. The Gyroscope protocol brings together many battle-tested ideas together in an elegant manner to expand the overall DeFi market in a safe and secure manner” — Tarun Chitra
Gyroscope is a decentralized stablecoin designed to address the problems that existing stablecoins have. The team consists of people who specialize in DeFi risks and stablecoins. The company’s primary goal is to create an all-conditional stablecoin that builds a solid infrastructure for DeFi.