Is Gyroscope Safe?
Risk Grade: B- (34/100)
Gyroscope is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — clever anti-bank-run design but novel mechanisms at $22M scale have not been battle-tested
A stablecoin (GYD) designed to survive multiple types of failures by holding a diversified basket of DeFi assets and using a novel anti-bank-run pricing mechanism. It has $22M in market cap with $4.5M in funding. Its C+ grade reflects untested novel mechanisms operating at small scale.
TVL
$2M
Mechanisms
7
Interactions
5
Value Grade
C
Key Risks for Gyroscope Users
During a crisis, the protocol deliberately reduces the amount you get back for each GYD below $1 to slow panic selling. You take a guaranteed loss to prevent a bigger collapse
Trading pools use a novel elliptical curve shape. If GYD's price moves outside the curve's range, all trading liquidity vanishes at once and you cannot sell
The reserve holds multiple DeFi tokens. If several of these fail at the same time (which happens during market crashes), the backing for GYD erodes from multiple directions
Top Risk Factors
- •PAMM algorithmic redemption reduces GYD exit value below $1 during reserve stress, deliberately penalizing early redeemers
- •E-CLP concentrated liquidity pools can lose all active liquidity if GYD price moves outside calibrated elliptical ranges
- •Reserve diversification depends on the health of constituent DeFi assets; correlated failures could drain the reserve simultaneously
Risk Score Breakdown
Gyroscope's highest risk area is Vitality Risk (8/10). Here's how each dimension contributes to the overall 34/100 score:
Read the Full Gyroscope Risk Report
This protocol has 2 collapse scenarios. 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?