> For the complete documentation index, see [llms.txt](https://docs.gypsytoken.org/faq/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gypsytoken.org/faq/usdg.md).

# USDG

Following are some popular questions about USDG. For a more detailed run down of this topics, please visit the [official documentation](https://docs.gypsytoken.org/tokenomics/tokens/usdg) here. 

## What is USDG?

USDG is a stable coin that is pegged to the US dollar. Pegging means that its value is tied to the USD. In simpler terms, 1 USDG is always equal to 1 USD. 

Gypsy mints a new USDG when a user deposits $1, and burns one when a user cashes that USDG for a dollar. This simple mechanism ensures a 1:1 pool of USDG <--> USD.&#x20;

## What can I use USDG for?&#x20;

Within the Gypsy ecosystem, USDG is the gateway coin for getting started with real-estate investments. Most users purchase USDG to convert it to GPSY tokens.&#x20;

However, one can do everything with USDG that you would with any other stable coin. Payments, remittance and streamlining financial transactions without involving a bank are the most popular uses.&#x20;

## Is USDG liquid?&#x20;

Yes USDG is liquid. You can trade this coin for a fiat USD at any time.&#x20;

## Is the liquidity pool always 1:1?

Yes the liquidity is always 1:1, meaning there is a cash reserve for every dollar converted to USDG. The actual funds are either kept as cash, cash-reserves, or money market instruments.&#x20;

## Is there a fee for converting dollar to USDG?&#x20;

&#x20;In addition to gas fees, some fees may apply when you convert your dollar to USDG. Fees is typically higher for smaller denominations (< $10), and is fairly nominal for much higher amounts (e.g., $10k+).&#x20;

Please refer to our site for the latest fees.&#x20;

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