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

Source: Gyroscope

On March 18, 2025, Tuesday, Gyroscope (Gyroscope Protocol), a non-custodial liquidity engine that combines a more efficient liquidity mechanism while reducing the fund management needs of liquidity providers and offering stablecoin yields, today launched its governance token GYFI. At the time of this token launch, Gyroscope's decentralized finance product has demonstrated strong attractiveness, with an annualized trading volume of $41 billion, an annualized trading fee 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 trading pairs and stablecoin yields, sets it apart from traditional decentralized exchanges (DEXes) or stablecoin operational models. This new revenue strategy has increased 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 gain voting rights. Gyroscope adopts a multi-governance model, with GYFI being just one way to acquire voting rights, aiming to allow various stakeholders to participate in governance.

Furthermore, GYFI holders may enjoy additional benefits in the future. For example, governance might decide to initiate a "buyback and burn" mechanism and combine it with a Conditional Cashflows model to reward holders based on the system's health status.

Currently, Gyroscope's decentralized governance is in full operation, and the protocol model has been validated. The launch of GYFI will be a key tool driving sustainable growth in the protocol's ecosystem.

GYFI Claiming Eligibility

GYFI claiming eligibility is determined by Gyroscope governance voting and includes but is not limited to:

• SPIN Points Event Participants

• Founding Member NFT Holders

• Gyroscope Galaxy Event Participant

• Other Community Members

Claiming Rules:

Users, when claiming GYFI, can freely choose to receive a portion as liquidity assets or stake it to earn more GYFI:

• Stake for 9 months and receive an additional 40% GYFI bonus

• Stake for 18 months and receive an additional 150% GYFI bonus

Furthermore, after the GYFI issuance, users can continue to earn GYFI through the Gyroscope platform, and specific eligibility requirements can be viewed in the Gyro Frontend App.

Enhancing the Efficiency of Passive Concentration Liquidity Pools

Gyroscope utilizes an innovative liquidity pool to make efficient centralized trading yields more accessible, reduce the need for liquidity providers to actively manage funds, and allow ordinary LPs to participate effortlessly.

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

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

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

• Stability Pairs — Low risk, moderate reward

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

Volatility Pair Liquidity Pool

Gyroscope's Volatility 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 the convenience and protection of the passive liquidity pool. The Annual Percentage Rate (APR) has previously reached 40%-150%, making it especially suitable for passive liquidity providers (Passive LPs), and outperforming Uniswap and Aerodrome in yield performance.

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 to reduce user operational costs. In addition, Gyroscope will introduce a new type of liquidity pool that concentrates ETH, BTC, and USD into the same pool, thereby increasing liquidity efficiency by 100%—a model that is not achievable on traditional DEXs like Uniswap.

These pools not only benefit liquidity providers but also bring stable protocol revenue to Gyroscope. Currently, every $1 of TVL can generate approximately $0.30 in annual protocol fees, and the protocol can maintain stable growth with little to no additional incentives required after the initial launch.

Superior Settlement Asset for Liquidity, Earning Additional Rewards

Gyroscope's stablecoin GYD can serve as an optional settlement asset for both volatile and stablecoin trading pairs, enhancing liquidity efficiency. Instead of dispersing liquidity across multiple stablecoin pools (such as USDC, USDT, sUSDe), leveraging GYD as a core hub, minting as needed, forms a highly efficient liquidity network.

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

Market Opportunity

In the current market environment, Gyroscope's volatility trading pair pool has over 100x expansion potential (for example, it can compete with mainstream DEXs like Aerodrome and Uniswap), while the scale of GYD usage as a core settlement asset can also significantly increase. If this growth is realized, Gyroscope will create substantial income in a highly efficient and organic manner. Furthermore, with market expansion (such as on-chain forex volume), Gyroscope's model will further benefit.

Zen Dragon, Balancer: "Gyroscope's innovation on Balancer represents a breakthrough development. The ECLP (Efficient Concentrated Liquidity Pool) product-market fit for highly correlated assets is natural, and its application on unrelated assets has become the market's default route to high capital efficiency configuration. Through its refined liquidity supply model, Gyroscope creates a win-win situation for liquidity providers and the protocol, making fund management simpler, more efficient, and passive. The Balancer team is thrilled to support Gyroscope's achievements today and looks forward to further collaboration in the future."

About the Gyroscope Protocol

The Gyroscope Protocol is an unaudited liquidity protocol that combines efficient passive concentrated liquidity with stablecoin yield. The initial development team behind the Gyroscope Protocol is 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 have received support from Placeholder and Galaxy. Gyroscope combines several design mechanisms that have also been adopted or seriously considered by major DeFi protocols, including but not limited to: (1) Dual Governance: Lido, (2) Heavy Asset Pooling: 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 is at the sole discretion of the participant. The information 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 associated with GYFI, GYD, and the Gyroscope liquidity pool and complying with all applicable laws and regulations in their jurisdiction. GYFI is not available in the United States, the United Kingdom, and other selected jurisdictions. For more information, please refer to the Terms of Service.

This article is a contributed piece and does not represent the views of BlockBeats