Gyroscope has announced the launch of the governance token GYFI, with TVL reaching an all-time high, and quarterly revenue growing by 550%.

2025-03-19 22:04

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On March 18, 2025, Tuesday, Gyroscope Protocol, an impermanent loss engine that combines a more efficient liquidity mechanism while alleviating liquidity providers' fund management requirements and providing stablecoin yield, today launched its governance token GYFI. At the time of this token launch, Gyroscope's decentralized finance products have shown strong appeal, with an annualized trading volume of $41 billion, annualized trading fees of $3.1 million, and a 550% quarterly trading fee revenue growth (data can be viewed here). Gyroscope's innovative revenue model, effectively combining high organic trading fees from volatile pairs and stablecoin yield, sets it apart from traditional decentralized exchanges (DEXes) or stablecoin operational models. This new revenue strategy has driven Gyroscope's protocol's annualized revenue to over $2 million.

GYFI Governance Token

As the governance token of the Gyroscope protocol, GYFI holders can stake it in a decentralized governance system to receive voting rights. Gyroscope adopts a multi-governance model, with GYFI being just one way to obtain voting rights, aiming to allow various stakeholders to participate in governance.

Furthermore, GYFI holders may enjoy more rights in the future. For example, governance may decide to initiate a "buyback and burn" mechanism, combined with conditional cash flow models, to provide rewards to holders based on the health of the system.

Currently, Gyroscope's decentralized governance is officially operational, and the protocol model has been validated. The launch of GYFI will be a key tool to drive the sustainable growth of the protocol's ecosystem.

GYFI Claim Eligibility

GYFI's claim eligibility is determined by Gyroscope's governance vote and includes but is not limited to:

• SPIN Points Event Participants

• Founding Member NFT Holders

• Gyroscope Galxe Event Participants

• Other Community Members

Claiming Rules:

Users, when claiming GYFI, can freely choose to claim a portion as liquidity assets or lock it up to receive more GYFI:

• Lockup for 9 months, eligible for an additional 40% GYFI bonus

• Lockup for 18 months, eligible for an additional 150% GYFI bonus

Furthermore, post GYFI issuance, users can continue to earn GYFI through the Gyroscope platform, with specific eligibility requirements available on the Gyro front-end app.

Enhancing the Efficiency of Passive Concentrated Liquidity Pools

Gyroscope employs an innovative liquidity pool that enhances the efficiency of centralized trading yields, making it easier for liquidity providers to manage funds and allowing ordinary LPs to participate effortlessly.

Currently, Gyroscope's total value locked (TVL) in its liquidity infrastructure has reached $62 million, with a cumulative transaction volume of $3.7 billion, and the market's capital efficiency (volume/TVL) can reach as high as 100%-1000%.

Users can choose different types of liquidity pools based on their risk preferences:

• Volatility trading pairs (e.g., ETH/USD) — High risk, high reward

• Stability trading pairs — Low risk, moderate reward

Gyroscope's liquidity pools are based on Balancer's customized pools and integrated with Aave, providing users with optional asset rehypothecation to further enhance yield efficiency.

Volatility Trading Pair Liquidity Pool

Gyroscope's volatility trading pair liquidity pool allows users to earn trading fees within a specified price range (e.g., ETH/USD price between $1800-$3300), while benefiting from passive liquidity pool convenience and protection mechanisms. The Annual Percentage Rate (APR) has reached 40%-150%, especially suitable for Passive LPs, and has shown better yield performance compared to Uniswap and Aerodrome.

With market price fluctuations, users can switch to a new price range liquidity pool at a low cost without manually adjusting their positions. Gyroscope incentivizes pools that perform the best and plans to launch dynamic liquidity pools that automatically adjust positions, reducing user operation costs. Additionally, Gyroscope will introduce a new type of liquidity pool that aggregates ETH, BTC, and USD into the same pool, thereby improving liquidity efficiency by 100%—a model that is not achievable on traditional DEXs like Uniswap.

These pools benefit not only liquidity providers but also bring stable protocol revenue to Gyroscope. Currently, every $1 of TVL can generate approximately $0.30 in annualized protocol fees, and after the initial launch period, stable growth can be maintained with minimal additional incentives.

Superfluid Settlement Assets, Earning Additional Revenue

Gyroscope's stablecoin GYD can be used as an optional settlement asset for both volatile and stablecoin pairs to enhance liquidity efficiency. Instead of spreading liquidity across multiple stablecoin pools (such as USDC, USDT, sUSDe), using GYD as a core hub, minted on demand, forms a highly efficient liquidity network.

Due to GYD's high stability and its ability to handle large transaction volumes with a small market cap, its efficient order routing mechanism ensures a smoother trading experience. Additionally, GYD can also earn stablecoin yields (typically 10%-15% APR), further enhancing capital utilization. This advantage allows GYD to integrate with volatile pairs, earning transaction fees while stacking stablecoin yields, achieving dual growth, and driving organic expansion of GYD.

Market Opportunity

In the current market environment, Gyroscope's volatile pair pools have over 100x scalability potential (e.g., to compete with Aerodrome, Uniswap, and other mainstream DEXs), and the use of GYD as the core settlement asset can also see significant growth. If this growth is realized, Gyroscope will create substantial income in a highly efficient and organic manner. Furthermore, as the market expands (such as on-chain forex trading volume), Gyroscope's model will further benefit.

Zen Dragon, Balancer: "Gyroscope's innovation on Balancer represents a groundbreaking advancement. The ECLP (Efficient Concentrated Liquidity Pool) naturally fits the product-market fit for highly correlated assets, and its application on uncorrelated assets has become the market's default high-capital-efficiency configuration. Gyroscope, through its refined liquidity supply model, creates a win-win situation between liquidity providers and the protocol, making fund management simpler, more efficient, and passive. The Balancer team is thrilled to help Gyroscope achieve today's milestones and looks forward to further collaboration in the future."

About the Gyroscope Protocol

Gyroscope is an AMM liquidity protocol that combines efficient passive concentrated liquidity and stablecoin yield. The initial development team of the Gyroscope protocol was FTL Labs, composed of Dr. Ariah Klages-Mundt, Lewis Gudgeon, and Daniel Perez, who have authored groundbreaking papers on stablecoin design and DeFi risk and received support from Placeholder and Galaxy. Gyroscope combines several design mechanisms that have been adopted or seriously considered by prominent DeFi protocols, including but not limited to: (1) Dual Governance: Lido, (2) Weighted Collateral Pools: Balancer/Order Router, (3) Stablecoin Pricing Mechanism: MakerDAO/Sky. Gyroscope is live on Ethereum, Arbitrum, Base, Polygon PoS and zkEVM, Avalanche, Optimism, Gnosis Chain, and Sei. For more information, please visit https://gyro.finance/ or refer to the documentation.

Disclaimer

The GYFI token is a utility token and should not be considered financial advice or investment guidance. Participation in this system is voluntary and at the participant's discretion. The information provided above about the Gyroscope product is for reference only and should not be construed as financial advice. Users should conduct thorough research and consult financial, legal, and technical advisors before interacting with Gyroscope and GYFI. Each participant is responsible for understanding the risks of GYFI, GYD, and the Gyroscope liquidity pools and for complying with all applicable laws and regulations in their jurisdiction. GYFI is not available in the United States, the United Kingdom, and other select jurisdictions. For more information, please refer to the Terms of Service.