usdGG

Overview

usdGG is a fully backed USD stablecoin (1 usdGG = 1 USDC in reserves) that accrues real yield from cross-chain swap fees on the Genius Bridge Protocol (GBP). Unlike a typical passive USDC holding (which yields 0% when held in a wallet that is not backed by Coinbase), usdGG allows liquidity providers (LPs) to earn a share of protocol fees whenever users swap assets across chains.

The Genius Protocol converts user deposits into USDC (or USDT on certain chains) and holds them in vaults. As cross-chain swaps occur, the protocol collects fees (tiered by swap size) and automatically distributes 90% of those fees to usdGG holders. In essence, usdGG = USDC + continuous fee income, achieved without lending out funds or relying on price oracles (the yield comes solely from swap activity). To amplify yield without introducing credit risk, Genius integrates M0 as a base-layer for reserve optimization—earning a baseline yield equivalent to the prevailing T-bill rate (~4%). All swap-based yield is passed back on top of this, allowing usdGG to stack protocol-native income on a risk-free floor.

Insurance fees are added to the backed USDC to protect against re-orgs and to account for rebalancing fees. This design eliminates traditional counterparty risk from lending, and usdGG's value remains anchored to its USDC reserves at all times. A minimum 25% of each vault's liquidity is kept on-hand to facilitate instant redemptions, ensuring 1:1 convertibility even under heavy usage.