USDG
USD Gypsy (USDG) is a fully-reserved stablecoin on the Ethereum blockchain and is always redeemable 1:1 for U.S. dollars.
USDG's price is pegged to $1 USD. Its peg mechanism uses a simple 100% collateralization approach. This means that for every 1 USDG in circulation, there is $1 USD held in reserve.
USDG is designed for Defi applications that need a transparent programable currency that can easily be on-ramped and off-ramped. You can monitor USDG's backing in real time on the explorer page.
Gypsy aims to fix problems that plague existing fiat-stablecoins
Maintaining a 1:1 ratio
Transparency
High limits on minimum deposits & withdrawals
True 1:1 Backing
Gypsy’s USDG maintains a 1:1 backing of holding only USD and other cash equivalents.
Blockchain-level Transparency
Gypsy is in the process of developing a Transaction Explorer. This feature allows anyone to see every transaction between fiat and stablecoin and vice versa. The transaction explorer also lets you directly see the treasury assets as well as USDG in circulation. This allows the world to audit them at any time, not just once a quarter. It also calculates the ratio of fiat in the bank account to coins in circulation.
A Fiat-Stablecoin for everyone
Gypsy enables investors to connect their bank accounts to their Gypsy accounts. With this, users can convert between USD and USDG with as little as $10. This enables everyone, not only large institutions, to control the supply of USDG in the crypto economy.
Purchase GPSY
Purchase GPSY makes the investor a fractional owner of a global network of homes that are rented out to produce yield.
Supply
Supply: No supply cap
$USDG is minted when
A user purchases USDG with USD
$USDG is burned when
A user withdrawals to USD
Price Stability Mechanisms
A price stability mechanism is a system or set of rules that are designed to keep prices stable. In the case of USDG the goal of these price stability mechanisms is to maintain USDG's price at 1 USD.
The USDG Target Price
The USDG Target Price is used to determine the value of collateral assets USDG holders receive in the case of an Emergency Shutdown. The Target Price for USDG is 1 USD, translating to a 1:1 USD hard peg.
Withdrawal to USD
Gypsy allows easy and quick withdrawals to USD from USDG at a 1:1 exchange rate. This helps maintaine price stability because USDG holders will be unwilling to sell their USDG for less than $1 as they can easily and quickly go to gypsytoken.org and redeem USDG for USD.
Arbitragers
An arbitrager is an independent (usually automated) actor that is incentivized by arbitrage opportunities to provide liquidity in various aspects of a decentralized system. In the Gypsy Protocol, arbitragers are market participants that help USDG maintain its Target Price ($1): they sell USDG when the market price is above the Target Price, and buy USDG when the market price is below the Target Price.
Risks:
Arbitragers will only perform their price stability when they have the faith that USDG is fully backed by USD. This is why Gypsy provides the Transaction Explorer so that arbitragers can view the live backing of USDG.
Distribution
USDG is minted and distributed to an individual who purchases USDG for 1 USD.
KYC
KYC stands for Know Your Customer and is a set of identity verification rules that most exchanges have to follow to abide by local laws. This might include submitting scans of state or federal ID, or sending in your government ID numbers like a Social Security Number if you live in the US. You'll be guided through whatever KYC process your exchange of choice has.
Last updated