Back in 2018, Gate.io launched its native stablecoin called USDG. Among other similar stablecoins, what makes USDG special and worth it to invest in?

Crypto exchanges are platforms for buying, selling, and trading cryptocurrencies. They basically work like traditional brokerage firms, but instead of assets like stocks and fiat currency pairs, crypto exchanges offer access to a wide variety of digital assets. Now as the industry grows, crypto exchanges began to adapt and make new innovations to satisfy their customers. This has led to the creation of crypto exchange tokens.

USDG stablecoin

Essentially, crypto exchange tokens are digital assets native to a specific exchange. Since they are usually backed by a trusted exchange, these tokens come with a number of advantages such as high liquidity, good reliability, and special discounts. These tokens are usually distributed through an Initial Exchange Offering (IEO) or an airdrop. Once an exchange token is officially released, it can be sold and traded just like any other cryptocurrency.

Gate.io is one of the top crypto exchanges that offers its own native crypto token called Gate Token (GT). Interestingly, the exchange also manages another coin called USDG, a stablecoin whose value is pegged to another asset or currency to maintain the coin's stability. While the exchange claims that the token offers a series of benefits for its holders, not many traders today know much about it yet.

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What is USDG?

USDG is a USD-pegged stablecoin managed by Gate.io that was released back in 2018. It was created by overcollateralized pledging of multiple blockchain assets. In other words, the value of 1 USDG represents the value of 1 USD. In doing so, the coin is expected to avoid the negative effect of market fluctuations to offer a more stable alternative for crypto traders.

USDG operates within Gate.io's ecosystem and is stored as a cross-chain asset in several chains, including Gatechain and Ethereum. Now, users can use GT to obtain USDG; they simply need to pledge their GT on the exchange platform and get USDG. There is no charged interest for doing so. According to Gate.io's website, users will also be able to pledge more assets to obtain USDG in the future.

The easiest place to get USDG is in Gate.io itself, but USDG is also available on several other exchanges including Binance, Bitfinex, OKEx, Huobi, and HitBTC. This way, the stablecoin is pretty accessible to a wide range of audiences. In addition, their support also contributes to creating a strong and viable environment for USDG.

 

How to Use USDG

You can use USDG for several purposes, such as:

 

Trading

Like other cryptocurrencies, USDG can be bought, sold, and exchanged in the crypto market. Since it's a stablecoin, USDG has a relatively more stable value than other crypto assets. This is quite a great advantage, considering that cryptocurrency is widely known to be risky and highly volatile.

 

Liquidity and Yield Farming

Gate.io has made an agreement with S.Finance to list USDG at S.Finance for stablecoin swap and liquidity yield farming. S.Finance is a DeFi project that uses a StableSwap market maker algorithm to create a stable and cheaper swap service. The agreement allows users to use their USDG to earn passive income from liquidity and yield farming.

 

HODL and Earn

Lastly, Gate.io also offers a feature called "USDG Earn" on its HODL and Earn platform, which offers various investment products such as flexible or term savings. This means users can get a chance to earn a high annualized yield from USDG simply by participating in a certain DeFi project.

Conveniently, there is no need to worry about the safety of DeFi projects because Gate.io only lists assets of broadly certified and audited DeFi mining projects. By investing in these projects, you can earn passive income with no extra fee.

 

Conclusion

Gate.io's USDG is quite an attractive stablecoin with a lot of potentials. The token is not exclusive to Gate.io as it is now pretty easy to find in multiple well-known exchanges. It can also be utilized in various different ways, so you can choose how to earn from it based on your style and preference.

In the long term, we can expect more upgrades and improvements coming from this project. The exchange might even collaborate with other firms and offer many more exciting features. After all, Gate.io is widely known to be one of the most innovative crypto exchanges in the market at the moment. They even offer perpetual contracts for traders who want to earn from crypto derivatives.