🔥 In depth interpretation: Why is "StableAI" the next important narrative in the field of encryption? @The core point of Defi0xJeff's tweet is that stablecoins and artificial intelligence, the two most powerful technological trends of the era, are combining in an unprecedented way, giving rise to a new and potentially huge cryptocurrency race - StableAI. This combination is not groundless, but to address the challenges faced by the AI field in the development of Web3. ⭐ Background: Stablecoins have become the cornerstone of the crypto world Firstly, we must recognize the status of stablecoins, which are like the 'dollar' of the crypto world. In recent years, the adoption rate of stablecoins has been exploding, especially in the fields of payments and cross-border transactions. With the entry of traditional financial giants such as Stripe and Societe Generale, as well as the successful listing of Circle, the future of stablecoins is bright. However, when we turned our attention to the equally hot AI track, we discovered a strange phenomenon. ⭐ Challenge 1: The "economic turmoil" of AI projects themselves - the volatility of native tokens Almost all Web3 AI projects, whether it's AI models, decentralized computing power, or AI proxy platforms, have their own native tokens (such as ATH, TAO, etc.). These tokens are designed for payments, governance, and incentives within the ecosystem. The original intention of this "token economics" model is good, as it can create a demand flywheel for tokens. But the problem lies precisely here: the price volatility of AI tokens in the cryptocurrency industry is high. Imagine this: -For users: If you want to use Aethir's computing power, you need to pay with ATH. But the price of ATH may fluctuate by 20% within a day, which means your usage cost is extremely unstable. -For developers/miners: Bittensor miners have worked hard to earn dTAO rewards, but they need to pay for real-world costs such as servers and manpower, which need to be exchanged for stablecoins. If dTAO prices plummet, their operations will be in trouble. -For liquidity providers: Providing liquidity for AI tokens requires a significant risk of impermanent losses. This inherent volatility greatly hinders the healthy development of the AI ecosystem, making its financial system fragile and unpredictable, and unable to focus on the construction of products and ecosystems. Solution: @TheMAITRIXai has proposed a brilliant solution, an AI stablecoin layer. It allows any AI project to issue over collateralized stablecoins (AI USDs) bound to its own ecosystem, using its own native tokens (and derivatives such as staking certificates) as collateral. Anchoring the US dollar, with stable value, completely solves all the above problems. ⭐ Challenge 2: Financing Challenges for AI Computing Hardware The rapid development of AI has brought endless demand for high-end computing resources such as GPUs. Data centers and cloud service providers need to invest heavily in purchasing expensive GPU hardware (such as NVIDIA H100) in advance to expand production capacity. The problem is that traditional finance, such as bank loans, has a slow financing process and complex procedures for this emerging industry, which cannot keep up with the speed of AI development. This has resulted in a huge funding gap. Solution: Introducing DeFi liquidity into AI hardware financing through RWA tokenization. @Gaic_ai packages the future cash flow generated by GPUs in data centers into tokenized products. Investors purchasing these products are equivalent to investing in the future returns of GPUs in advance and receiving high returns (the floating yield of their stablecoin AID is expected to be around 40% APY). @USDai_official allows hardware owners such as data centers to use their GPUs and other devices as collateral to lend stablecoins USDAI from the agreement. The interest is paid to the holders of USDAI. This is a pure debt investment with more stable returns (target 15-25% APY). At the end of the article, other stablecoin projects related to AI were also mentioned, believing that the future of StableAI is full of imagination, and the value of AI projects will more easily flow into DeFi, enhancing the value capture capability of the entire Web3 ecosystem. In the next few days, Biteye will introduce the StableAI track projects one by one. Stay tuned! 🚀