Introducing Gyroscope’s New ‘Rehype’ Liquidity Pools, the Most Capital Efficient Liquidity Pools on the Market


Gyroscope, the all-weather stablecoin on Ethereum, is announcing our new ‘Rehype’ liquidity pools powered by Aave along with an invite-only SPIN point system.

Gyroscope’s Rehype pools are new AMMs that increase liquidity pool yield by combining asymmetric concentrated liquidity with auto-re hypothecation to lending markets like Aave. With today’s launches, Gyroscope expands upon its reputation for stablecoin design innovations that put risk controls on autopilot.

Thanks to Aave Grants for their support in bringing Rehype (or boosted) elliptic concentrated liquidity pools (E-CLPs) to market.

New ‘Rehype’ Liquidity Pools

Gyroscope’s Rehype pools maximise LP yields by combining asymmetric concentrated liquidity with auto-rehypothecation to Aave. They allow LPs to triple dip in yield sources by layering swap yields from concentrated liquidity on top of lending yields on top of token incentive markets, in addition to earning Gyroscope SPIN. The combination of yield sources is expected to often reach mid-double-digit organic yield rates in the current environment.

Rehype pools work by incorporating lending deposits like Aave aUSDC in a simple way directly at the pool asset level with the conversion between lending deposit and underlying asset handled through front-ends and smart order routing.

“Our new Rehype liquidity pools will be, by far, the most capital efficient liquidity pools on the market. They improve capital efficiency on two fronts: asymmetric concentrated liquidity from E-CLPs and yield from auto-rehypothecating pool assets to lending protocols. They combine many yield sources into one form that can itself be used as productive collateral in other protocols in the form of pool shares,” said Ariah Klages-Mundt, co-founder of FTL Labs, developer of Gyroscope. “At the same time, rehypothecation in these pools is transparent and user controlled, in contrast to common rehypothecation practices that give issues in TradFi.”


At the time of writing, GYD E-CLPs are 75% more efficient than competitive offerings and are providing yield of over 60%.

Read more about Rehype E-CLPs here:

Initial Pools

The first ‘Rehype’ pools are:

SPIN & Gyroscope Governance

SPIN will allow the community to recognize new early Gyroscope stakeholders for consideration in governance bootstrapping, including governance token distribution.

The Gyroscope SPIN system comes in the context of the rollout of the Gyroscope Governance system. The governance system aims to give voting power to different governance participants, including those with capital locked, those with long-standing interest in the project, as well as whitelisted experienced actors from across the DeFi ecosystem who are now eligible to claim a Councillor NFT.

SPIN can be earned on GYD and select E-CLP pools, including Aave Rehype pools and the GHO/GYD pool jointly launched with Tokenlogic and Karpatkey as part of the GHO liquidity campaign.

Read more details on Gyroscope including SPIN here and in coverage by Coindesk.

About Gyroscope

Gyroscope is a decentralized stablecoin featuring a novel all-weather stablecoin design combined with a more efficient stablecoin DEX. The initial development team of the Gyroscope protocol is FTL Labs, comprising PhDs Ariah Klages-Mundt, Lewis Gudgeon and Daniel Perez, who authored seminal papers on stablecoin design and DeFi risk, with backing led by Placeholder and Galaxy. Gyroscope’s stablecoin Gyro Dollars (GYD) was built with a novel design system to fill a critical gap in the secure scalability of stablecoins. GYD is live on Ethereum and Gyroscope’s E-CLPs are live on Ethereum, Polygon, Arbitrum, and Optimism. For more information, please visit or review the documentation.

Disclaimer. The SPIN points system is a promotional feature and should not be considered financial advice or an investment guide. Participation in this system is voluntary and at the discretion of the participants. The SPIN earned in this system are part of a promotional campaign and are not guaranteed to be converted into any form of value. It is the responsibility of each participant to understand the risks and to comply with all applicable laws and regulations in their jurisdiction. The SPIN system is not available in the United States, United Kingdom and selected other jurisdictions. See the Terms of Service for more information.


Hey all, Steffen from FTL Labs / Gyroscope here. I co-designed the Rehype pools and the ECLP. I have nothing to add to what Ari wrote except that I’m super hyped (hehe) to see the Rehype pools live and excited to see how they turn out. These pools are gonna help drive supply to Aave and let LPers use their funds efficiently.


Thanks for highlighting Gyroscope’s new ‘Rehype’ Liquidity Pools @aklamun.

Aave Grants supported their development with a grant this past February after seeing the potential growth of Rehype pools. The introduction of SPIN points is a great bonus and we are glad to see the inclusion of Rehype pools and the GHO/GYD pool.