> For the complete documentation index, see [llms.txt](https://gmd-protocol.gitbook.io/gnd-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gmd-protocol.gitbook.io/gnd-protocol/gmusd-working-mechanism/what-is-gmusd.md).

# What is gmUSD?

Introducing $gmUSD

$gmUSD is an algorithmic stablecoin fully backed by $gDAI and $gmdUSDC.

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<figure><img src="/files/USjl0kvXidaYiA16opm1" alt=""><figcaption><p>$gmUSD Logo</p></figcaption></figure>

The supply of $gmUSD can be managed by the protocol minting and redeeming as a part of the **Protocol Smart Arbitrage Leverage Mechanism (PSALM)**.<br>

Backed by yield-bearing assets, $gmUSD is also a yield-bearing stablecoin, appreciating in value at an average rate of 15–25% annually.