Gemini Dollar (GUSD)
Gemini Dollar (GUSD) is a stablecoin created on the Ethereum blockchain. It is issued by a New York trust company and maintains a 1:1 peg with the U.S. dollar. Launched in 2018 by Tyler and Cameron Winklevoss, it received approval from the New York Department of Financial Services (NYDFS).
Overview of Gemini Dollar
The Gemini Dollar was introduced by the Gemini Trust Company, owned by the Winklevoss twins, on September 10, 2018. This launch followed regulatory approval from the NYDFS. Established in February 2014, Gemini is a digital currency exchange and custodian that facilitates the buying, selling, and storing of digital assets. GUSD is an ERC-20-compliant token transferable on the Ethereum network, with smart contracts audited by Trail of Bits Inc. The reserves backing GUSD are held at a U.S. bank and are eligible for FDIC "pass-through" deposit insurance.
Technology behind Gemini Dollar
| Ticker | GUSD |
| Category | Stablecoins |
| Website | https://gemini.com/dollar/ |
| @Gemini | |
| Telegram | geminiofficial_APAC |
| https://www.reddit.com/r/Gemini | |
| Contract Addresses | |
|---|---|
| ethereum | 0x05...cd Copied! |
| near-protocol | 05...arCopied! |
Maintaining the 1:1 peg
GUSD maintains a fixed exchange rate of 1:1 with the U.S. dollar. Gemini ensures this stability by adjusting the token supply in accordance with the supply of USD. An independent public accounting firm, LLP, BPM, audits the deposit balance monthly to verify this peg. When customers withdraw GUSD through the Gemini exchange, new tokens are minted and backed by USD. Conversely, depositing GUSD into a Gemini wallet converts it back into U.S. dollars.
Smart contracts
Gemini Dollar utilizes three types of smart contracts: 'Proxy,' 'Impl,' and 'Store.'
- Proxy: Acts as the public interface for GUSD, delegating core functions like token transfers to 'Impl.'
- Impl: Delegates ledger ownership to 'Store.'
- Store: Serves as the external and permanent ledger for GUSD.
Security features
The security of the Gemini Dollar system is ensured through several features:
- Offline keys: High-risk action keys are stored offline in a Cold Storage System.
- Key generation: Keys are generated and managed using hardware security modules (HSMs).
- Dual control: High-risk actions require signatures from at least two signers.
- Time lock: A grace period is enforced before executing high-risk actions.
- Revocation: Pending actions can be revoked to prevent errors or malicious activities.
Gemini products
Gemini Credit Card
The Gemini Credit Card allows users to earn rewards in various cryptocurrencies, including Bitcoin and Ethereum. Crypto rewards are deposited directly into users' Gemini accounts at the time of transaction without any delays or fees.
Gemini ActiveTrader
Gemini ActiveTrader is a trading platform offering a professional-level experience with advanced charting tools, crypto derivatives trading, and various order types.
Gemini Custody
Gemini Custody offers secure storage and management of digital assets. It meets traditional financial institution standards and provides cold storage insurance coverage for certain crypto losses.
Gemini Clearing
Gemini Clearing facilitates off-order book trade settlements between two parties, with Gemini acting as a confirming third party to ensure timely settlement.
Gemini Wallet
Gemini Wallet provides secure storage options through insured hot wallets or institutional-grade cold storage, supporting a wide range of assets.
Gemini Staking
Gemini Staking enables users to participate in blockchain ecosystems and earn staking rewards on their cryptocurrencies.
Gemini eOTC
Gemini eOTC is an automated trading platform offering real-time insights into asset prices and order execution details.
Recent developments
MakerDAO's adjustments
In June 2023, MakerDAO, a DeFi lending platform, approved a $390 million reduction in its GUSD holdings from its reserves, decreasing the maximum amount of GUSD held in its DAI stablecoin reserve from $500 million to $110 million. The proposal aimed to enhance capital efficiency by reallocating funds to higher revenue-generating opportunities. The Peg Stability Module (PSM) of MakerDAO held $489 million worth of GUSD, and nearly 94% of voters supported the proposal to reduce GUSD.