Why is it called Gyroscope?
Background on the naming of Gyroscope
Gyroscope is a new stablecoin design that, like a physical gyroscope, remains stable as the surrounding environment changes. Its reserve of capital acts like a spinning disk, maintaining its peg target.
Gyroscope experiences “friction” if assets in the reserve lose value and users swap stablecoins for the underlying reserve assets. Drawing on the reserves makes the stablecoin “wobbly” as the spinning disk slows, similar to a physical gyroscope. But crucially, also like a physical gyroscope, it can be “spun” back up, with high reserve yields and inflows to the stablecoin boosting the reserve.