Crypto Market Maker GSR Commits $100 Million to Tokenized Gold Yield Plan!

Crypto market maker GSR has made a multi-year $100 million capital commitment, primarily in the form of credit facilities, to Hare’s products, which aim to generate yield for stablecoin and tokenized gold holders.

According to CoinDesk, GSR is launching a new on-chain lending business called Hare alongside liquidity distribution platform Turtle. The plan centers on providing initial liquidity to the products with GSR’s own capital before investors participate.

Two products for gold tokens and stablecoins

Hare’s first two products will operate on the Aave lending protocol. Hare USD Earn will accept major dollar stablecoins in a single vault. Hare Gold Earn aims to give holders of Paxos’s tokenized gold products, PAXG and PAXGy, the opportunity to earn yield. Paxos Labs is also partnering on the development of the gold product.

In these vaults, investors deposit their assets into smart contracts, and vault managers decide how to deploy the capital in lending markets and other strategies. The aim is to generate yield by putting assets held in wallets to work in lending activities.

GSR will commit capital before outside investors

The $100 million commitment spans multiple years and consists largely of credit facilities. GSR’s capital will be allocated to Hare’s products before outside investors participate.

Hare CEO Connor Milner said the company aims to give issuers access to liquidity from day one while allowing investors to participate in vaults that also contain GSR’s own capital.

Hare will focus on evaluating collateral and counterparties in its lending activities. Assessing how positions would behave under market stress will also be part of this process. The yield model depends on which lending and investment strategies are used for the assets in the vaults.