General
What is Gyoza?
Gyoza is a decentralized borrowing protocol that will let users deposit ETH, LSTs, and ARB as collateral, and mint the stablecoin gyUSD at an interest rate depositors choose. Gyoza is friendly fork based on Liquity v2.
Gyoza is not yet live. This documentation describes the planned functionality once the protocol launches.
The main use-cases for Gyoza are:
- Borrow gyUSD
- 1-click multiply exposure to collateral assets
- Earn yield by depositing gyUSD in the stability pool or farming elsewhere
To understand Gyoza it's helpful to understand Liquity
Liquity V1 was an immutable lending protocol that allowed users to take 0% interest loans on their ETH to receive $LUSD. Over the past 4 years it proved itself resilient in a variety of market conditions.
Liquity V2 is the next iteration of borrowing, allowing users to set their own interest rate, and use more tokens as collateral.
Liquity V1 vs Liquity V2
| Similarities | Differences |
|---|---|
| Immutability | User-set interest rates – more control over your borrowing cost. |
| Decentralized | New collateral types - ETH, rETH, wstETH |
| Rigorous Security | Improved redemption mechanism (lowest borrowing rate is redeemed first) |
| Redemption of stablecoins for underlying collateral maintains the $1.00 peg no matter what | Troves are now transferable |
| ETH Mainnet Only | V1’s code was free and open-sourced (FOSS), while with V2, Liquity will have its code set as a business source license (BUSL) |
Gyoza vs Liquity V2
| Similarities | Differences |
|---|---|
| Immutability | ETH Mainnet (Liquity V2) only vs Arbitrum Only (Gyoza) |
| Decentralization | Additional Collateral: Gyoza accepts: ETH, wstETH, rETH, rsETH, weETH, ARB, COMP, tBTC |
| Redemption of stablecoins for underlying collateral maintains the $1.00 peg no matter what | Protocol revenue sharing through PIL (Protocol Incentivized Liquidity) |
| Shared Security from Friendly Forks | ARB deposited in the protocol can be delegated by Gyoza governance. |
| Gyoza adds Additional security features to allow for the other features, like debt limits | |
Does Gyoza have governance?
Gyoza is subject to minimal governance which is solely tasked with distributing Protocol Liquidity Incentives (PIL), directing 25% of the protocol's revenue to external initiatives, delegating ARB, and updating collateral debt limits. Governance can never change the fee split, update protocol parameters, mint new stablecoins, or anything else.
Other Helpful Resources:
Dune Dashboard: https://dune.com/niftyteam/nerite