The world of DeFi is actively developing. More and more people are interested in decentralized finance. Just looking at the number of startups, ecosystems and conferences is enough. Countries are even starting to implement cryptocurrencies as legal tender. The need for an open, transparent and secure financial system is the main driving force behind the debate on decentralized versus traditional finance. It is therefore not surprising that decentralized finance is slowly emerging as an alternative to today’s financial system.
Using DeFi is currently too complicated for inexperienced users due to the small number of refined users and the relative complexity of the industry. Users can learn how multiple blockchains work, which tokens are on which chains, where and how their returns are generated, etc. they must understand. However, we can say that these problems are being resolved as time goes on. Bridges have become popular for moving assets between different chains and in the future users will not know or care which blockchain they use.
The project I want to examine in this article is the Gold Standard DAO, which is a DeFi application. As most of us know, various DeFi applications such as Beefy, Homora, BenQi offer the opportunity to earn passive income from real money representations such as USDC, USDT, DAI, which we call stablecoins. For example, at the time of this writing, you can earn 3.4% per year for USDC and 14% per year for USDT from the Homora platform. Each platform offers different rates of return and these rates are constantly changing. Sure, some platforms do offer higher odds, but their sustainability is questionable because we know that many DAO structures have gone bankrupt because of it.
Gold Standard DAO amenities
The Gold Standard DAO, on the other hand, provides some conveniences related to the use of DeFi. It uses a smart contract that monitors profit providers such as Homora, BenQi, Beefy and connects them to their pools. For example, when you put your money on this platform for passive income, the platform almost finds the highest rate of return available and places your money there. If the rates change and another provider offers a better rate, the contract shifts your money to the provider with the higher rate. In this way, you can be sure that you are constantly making the highest profit. It is also a plus that the platform only trades on the most well-known and most used stablecoins, USDC, USDT, DAI, and only on trusted providers.
Another main feature of the platform is that it offers you the profit you get in gold. The smart contract used regularly converts your profits into AUX, which represents digital gold, through the pool available on TraderJoe. Here we can see AUX as the representation of 1 gram of gold in the crypto market. In other words, you both get the highest return and protect the value of your money by taking advantage of the power of gold against dollar inflation. If you want your returns in dollars, it is also possible to instantly convert them to dollars using the pool.
The Gold Standard DAO is represented by the $GSD token. The fact that the token supply is limited to 33,000, the tokens are staked on the platform and receive a share of the protocol revenues, and voting rights in the management voting make GSD a good medium-term investment. Available on GSD TraderJoe.