💵 | What is $gfUSD?

$gfUSD is Galahad Finance yield bearing stable-coin. As a stablecoin, $gfUSD is designed to maintain a stable value. $gfUSD aims to minimize price volatility and offer users a reliable medium of exchange and store of value within the Galahad Finance ecosystem. The stability of $gfUSD allows users to transact and hold assets without being subject to significant price fluctuations.

$gfUSD, a Galahad Finance over-collateralized stablecoin backed by $stETH. Every $gfUSD in circulation is backed by a minimum of $1.5 worth of $wstETH.

Holding $gfUSD generates yield from $ETH staking on the LSD protocol with an APY approximately 7–10%.

$gfUSD generates yield by simply holding it

Every $ETH or $stETH deposited will generate around 4.8% yield (based on Lido 7 days moving average data) and the yield will be distributed to all $gfUSD holders with a small percentage of yield for $GFC holders.

$gfUSD Arbitrage Opportunity

• If the $gfUSD price is above $1 - Users can deposit $ETH or $stETH, mint $gfUSD and then sell $gfUSD on DEX or CEX. This action will push the $gfUSD price close to $1 and users can buy back $gfUSD then pay the debt.

• If the $gfUSD price is below $1 - Users can buy $gfUSD on DEX or CEX and then redeem $gfUSD for $ETH or $stETH for securing the profit.