Hi everyone in the Compound community!
In recent months, we’ve been boosting the Gemini dollar (GUSD) presence in the DeFi ecosystem. We think being part of Compound would be a valuable addition to the protocol and a great next step for the GUSD.
Gemini Trust Company, LLC is a U.S. company regulated by the New York Department of Financial Services. Gemini dollar (GUSD) bank reserves are eligible for FDIC insurance up to $250,000 per user while custodied with State Street Bank and Trust. USD reserve audits are published monthly by an independent registered accounting firm, BPM LLP. The GUSDEthereum smart contract was launched in September 2018 and has been audited by Trail of Bits. There are no fees to create or redeem GUSD through Gemini and Gemini currently covers all gas costs to withdraw on-chain.
GUSD is one of the first fiat-backed stablecoins on Ethereum with approximately $210mm in float. The GUSD Aave market size is $30mm, the GUSD Curve pool has $30mm locked, and there’s more than $7mm locked in our Yearn vault. GUSD is also tradeable on Uniswap and is active as Vault collateral on Maker. Gemini users have been able to trade COMP since September 2020.
GUSD can always be created and redeemed with USD 1:1 on Gemini. As one of the most popular exchanges and fiat on-ramps, we think our users would find Compound’s interest rate markets attractive and bring further growth to the protocol. We also believe Compound and the general DeFi ecosystem can benefit from diversifying exposure to different centralized stablecoins by including trusted, highly regulated issuers like Gemini.
In addition, we are increasingly exploring strategies that can augment Gemini’s value-add to DeFi and support for the ecosystem. These include thinking about possible product integrations and having active relationships with regulators to figure out the friction points and possible solutions that can help us best collaborate with teams like Compound Labs. GUSD could act as a natural gateway asset for these future plans and facilitate possible integrations and support for Compound.
We propose including a GUSD market with an initial collateral factor of 0% to start with.
Later on, we’d love to have conversations with the Compound community about increasing the collateral factor and adding COMP distribution for the market.
Website: Gemini dollar (GUSD) | Gemini
Source code: GitHub - gemini/dollar: Gemini dollar contract source code
GUSD token contract: $0.9874 | Gemini dollar (GUSD) Token Tracker | Etherscan
Independent accountant’s reports: Gemini dollar (GUSD) | Gemini
Trail of bits contract audit: https://gemini.com/static/dollar/gemini-dollar-trailofbits-audit.pdf
COMP available on Gemini announcement: PAX Gold, Amp, and Compound Trading Now Available | Gemini
Please reach out to me if you have any questions. Thank you.
Onward and Upward,