Gambit is a protocol for interest-generating stablecoins backed by leverage. Current stablecoin solutions typically require backing by a centralised fiat reserve or over-collaterization. With Gambit, we present a design for a partially-backed stablecoin that automatically generates interest. Here is an overview of how the stablecoin would work: gUSD can be minted with any whitelisted asset, e.g. BNB; The amount minted is determined by the price of the asset; For example, if the price of BNB is 200 USD, then 1 BNB can mint 200 gUSD tokens; Assets in the system can be used by anyone to open a long position; Longing maintains the collateral backing the system while generating fees that can be paid as interest to gUSD holders. An interesting use case would be to use Gambit for Cross-asset Swaps similar to Curve Finance and Synthetix. For example, if both BNB and ETH are whitelisted assets then a swap from BNB to ETH and vice versa could be done through Gambit with zero slippage.