# What is gmUSD? Introducing $gmUSD $gmUSD is an algorithmic stablecoin fully backed by $gDAI and $gmdUSDC.

The supply of $gmUSD can be managed by the protocol minting and redeeming as a part of the **Protocol Smart Arbitrage Leverage Mechanism (PSALM)**.
Backed by yield-bearing assets, $gmUSD is also a yield-bearing stablecoin, appreciating in value at an average rate of 15–25% annually. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://gmd-protocol.gitbook.io/gnd-protocol/gmusd-working-mechanism/what-is-gmusd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.