GUSPrice

(GUS)

GUS is a decentralized finance (DeFi) protocol centered around an over-collateralized stablecoin pegged to the USD. It operates within leading blockchain networks to provide liquidity and stability. The project features two primary components: the GUS stablecoin and the GUS utility token. The GUS token serves as a liquid governance asset, allowing holders to participate in protocol decisions. Unlike meme-based tokens with similar names on other chains, the GUS.fi protocol is a functional DeFi tool designed for lending, borrowing, and yield generation through decentralized mechanisms.

GUS is the liquid, tradable version of the protocol's native token, which can be easily transferred or traded on top-tier exchanges. In contrast, veGUS (vote-escrowed GUS) is a non-transferable token obtained by locking your GUS for a specific duration, often up to four years. By converting GUS to veGUS, users gain significant voting power in governance proposals and become eligible for a higher share of the protocol’s yield. This mechanism is designed to reward long-term participants and align investor interests with the protocol's long-term growth.

The Stability Pool is a core feature where users provide GUS stablecoins to facilitate the protocol's liquidation process. When a vault becomes under-collateralized, the Stability Pool is used to repay the debt. In exchange for providing this liquidity, stakers receive rewards in the form of GUS token emissions and collateral gains from liquidated positions, such as ETH or other supported assets. This allows participants to accumulate diverse assets while supporting the protocol's health. Yields are variable and typically increase during periods of high market volatility.

No, rewards in the GUS protocol do not auto-compound. When you earn GUS tokens or collateral gains within the Stability Pool, these rewards must be manually claimed by the user. Once claimed, users can choose to redeposit them into the pool or move them to their preferred wallet. It is important for investors to manage their positions actively, as the system requires manual interaction to initiate the restaking or compounding process for any newly earned assets.

Liquidation risk in the Stability Pool refers to a process where a user's staked GUS balance may decrease. This occurs because the staked GUS is used to absorb the debt of under-collateralized vaults. However, this is not a simple loss; when GUS is deducted from your balance to cover a liquidation, you receive a proportional share of the liquidated collateral at a discount. Consequently, while your GUS balance might drop, your holdings of other collateral assets will increase, often resulting in a net gain in total value for the staker.

Users can mint the GUS stablecoin by opening a Vault and depositing accepted collateral, such as ETH or other high-liquidity assets supported by the protocol. To ensure the stability of the peg, the protocol requires a Minimum Collateralization Ratio (MCR). This means the value of your collateral must always exceed the value of the GUS you have minted by a specific percentage. If the value of your collateral falls below this threshold, the vault may be liquidated to maintain system solvency. Users can use the LBank Wallet or other compatible Web3 wallets to manage these vaults.