> For the complete documentation index, see [llms.txt](https://gem-web3-vision.gitbook.io/wp/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gem-web3-vision.gitbook.io/wp/phase-3.-gem-dollar.md). # Phase 3. GEM Dollar GemUSD is a convertible coin that could rewrite the conventional wisdom

### What is GEM Dollar? GEM Dollar is, in a nutshell, **a seigniorage protocol (also known as a money printer)** that issues GemUSD, **a convertible currency with a guaranteed redemption rate of $1**. The coin issued in GEM Dollar is **GemUSD**. While GemUSD is not a stable coin and can trade above $1 in the market, if it falls below $1, it can be redeemed for $1 through a redemption process. This simple mechanism is the cornerstone of the GEM hedge fund and all other services. ### Why convertible? For a convertible currency to function properly and stably, a stable operating entity is essential. Looking specifically at the cryptocurrency market, with all the altcoins and stablecoins swarming the market, only a few companies have a long-standing background. Many projects have returned to Earth (Terra) after initially taking off for the moon (Luna) at breakneck speed. Many people believed that the foothold they were standing on was the solid Ayers Rock, but in fact it was an air mattress. On the other hand, GemUSD has the potential to overcome this natural law.