Thread by @EconsDesign

Gyroscope is an all-weather stablecoin that is decentralized, scalable, and highly liquid based on revolutionary new designs. It's not out yet, still in testnet phase. But we'd like to share how the protocol works.

#stablecoin #decentralized @GyroStable

3 main highlights of GYD:

1. All-Weather Stablecoin
2. Dual AMM Mechanism
3. Still in development

Mechanisms:

1. Reserve Based: The reserve ratio, in the long run, is supposed to be 100%
2. Algorithmic: It has a dual AMM model which is basically an AMM in the primary market and an AMM in the secondary market.

3. Dual-Token System: There are two tokens in the system the GYD or gyro dollar itself and then we have the governance token which is used to set system parameters.

Peg

It is soft-pegged to US dollars.

Instead of an external oracle, it uses a dual-AMM mechanism to maintain and balance its peg.

Gyroscope essentially contains two main lines of defense which are used to maintain the peg.

One of them is the all-weather reserve and the idea here is that we take different collateral types primarily but not exclusively stablecoins and these different assets are separated into different compartments in the reserve.

They are separated in such a way that if one of the individual assets experiences trouble then the maximum damage this can do to the total value of the reserve is limited very tightly.

Their aim just at a high level is to diversify all of the risks in DeFi to the greatest possible extent.

How does it work using the dual AMM model? Watch our latest video on Gyroscope to find out: