Cryptocurrency startup Gyroscope, which is developing what it calls a “unique stablecoin,” has announced that it closed a successful $4.5 million fundraising in a January seed investment round. Gyroscope claims that it has decided to make the news public now since the protocol’s coding is nearly finished and it is preparing for a full release.
Gyroscope’s mission to create a transparent, non-custodial and decentralized stablecoin
Gyroscope says that through its stablecoin the gyro dollar ($GYD), seeks to address the risks, adoption barriers, and long-term viability that plague stablecoins currently. The idea is to create a bridge between centralized and algorithmic stablecoins, which have been plagued by a myriad of challenges. In contrast to other stablecoins, the GYD is not held in a central depository, and it is intended to be fully backed by assets in a reserve.
Prior to its official release on Ethereum, a beta version of Gyroscope known as gyro proto (p-GYD) is now available for testing purposes on Polygon. During the beta phase, the protocol will remain under the temporary control of the project’s development team, FTL Labs. However, after going live on Ethereum, the DAO will take control of the running of the protocol due to the blockchain’s decentralized design.
Repercussions from Terra’s demise last year sent shockwaves throughout the market, adding further downward pressure to the bearish trend in the cryptocurrency market, which had been experiencing difficulty from earlier in the year. When it comes to reserves, Gyroscope claims to have created a decentralized stablecoin that can withstand any hash market conditions. The coin is designed to address the risks, lack of adoption, and shaky future of stablecoins.
Each stablecoin unit issued by Gyroscope will be supported by an equivalent of 1 USD in assets. The company says that by consisting of separate assets, the reserve is able to stratify risk. Also, the reserve’s assets are not meant to interact with one another. At inception, the reserve will mainly consist of other stablecoins.