🔥 Deep interpretation of early AI stablecoin projects 02—— http://USD.AI @USDai_Official Currently, the rapid development of AI has a huge demand for computing resources and related infrastructure. However, traditional financing models have many drawbacks: they are slow, opaque, geographically limited, and lack scalability. http://USD.AI The birth is aimed at the financing pain points of AI hardware and DePIN. Projects such as GPU computing power clusters and new IoT networks often have huge capital expenditures, but it is difficult to obtain loans from traditional banks (even if they have stable cash flow). Meanwhile, a large amount of DeFi funds lack reliable high-yield destinations. http://USD.AI Connect the two: lend users' stablecoins to carefully selected AI infrastructure operators through protocol pools, using their expensive hardware devices as collateral. In this way, these operators can obtain much-needed expansion funds, purchase more equipment, and expand their computing power scale, while the invested encrypted users earn high loan interest returns, achieving a win-win situation. ⭐ 1. Core mechanism http://USD.AI Adopting a dual token model, issuing two types of stablecoin assets: USDai and sUSDai, allowing users to deposit stablecoins and mint USDai; Pledge USDai to obtain sUSDai. -USDai is a low-risk synthetic U.S. dollar, backed by interest bearing treasury bond (such as the "M" token of M ^ 0) as collateral, but the bottom treasury bond income will not be distributed to USDai holders. It provides stability and liquidity. Redemption is available at any time. -SUDAI is a "revenue version" token aimed at investors, where funds are invested in AI computing power, energy, communication and other infrastructure loans to obtain the returns of these physical assets. Therefore, there are two sources of income for sUSDai: one is the income generated from the underlying treasury bond of USDai, and the other is the interest on physical infrastructure loans such as AI hardware and DePIN assets. Note that sUSDai has a 30 day redemption window. If you do not want to wait for 30 days and want to obtain priority redemption rights in advance, you can participate in the QEV auction mechanism to bid. (The specific introduction of QEV will be elaborated in the next section) In short, http://USD.AI The purpose is to transform AI hardware, computing devices, and DePIN assets that originally lacked liquidity into efficient and liquid productive capital through the dual token USDai/sUDAI. ⭐ II. Technical Interpretation In terms of technical mechanism design, http://USD.AI The introduction of CALIBER asset framework and QEV redemption mechanism provides a safety net and liquidity guarantee for the above model. The CALIBER framework is a solution for digitizing and legalizing the custody of physical assets. When the borrower uses AI hardware as collateral for a loan, http://USD.AI We will mint NFT ownership certificates representing the asset on the chain. In this way, if the borrower defaults, the agreement can be legally retrieved and the equipment disposed of to repay the investor. In the eyes of users, CALIBER means that the assets behind sUDAI are real and secure hardware, enhancing the credibility of the entire system. The QEV mechanism is used to manage the redemption liquidity of sUDAI. Unlike the first come, first served queue of typical stablecoins, http://USD.AI The redemption is designed as a blind auction once a month, and the agreement packages the funds available for redemption in the current period, allowing holders who want to withdraw to bid anonymously for redemption. The higher the bid (the less interest willing to give up), the higher the priority for redemption, which is equivalent to using market means to determine who will exit first. This auction mechanism prevents panic runs and incentivizes long-term holding. ⭐ III. Participation Methods currently http://USD.AI In the internal testing stage, participants can cast USDai and sUSDai on Arbitrarum. Due to the still closed testing, the official application interface has not yet been opened to the public. Ordinary users need to fill out a whitelist on the official website to qualify for participation. According to the roadmap, the project plan is to soon open public beta and launch more chains such as the Ethereum mainnet and Berachain. At the same time, a point reward mechanism called Cores will be launched soon - early beta users and contributors will receive points based on their activities for future rewards. ⭐ IV. Risk Warning Liquidity lag risk: Due to the closed cycle redemption design adopted by sUSDai, normal redemption requires waiting for one cycle (about 30 days) to extract underlying assets. If there is a concentrated redemption demand in a short period of time, the liquidity of users' funds will be limited. For this project, the QEV auction mechanism has been introduced to buffer, but the liquidity of the secondary market may still experience temporary shortages in extreme situations, requiring some liquidity expectation management. Early protocol risks: http://USD.AI It is still in the early testing stage, and there may be undisclosed issues with its smart contracts, auction mechanism, etc., which need to be tested over time. Before participating, it is necessary to be mentally prepared and risk assessed for possible extreme situations. ⭐ V. Future Prospects With the explosive growth of demand for artificial intelligence infrastructure, http://USD.AI The good operation of this model not only means that DeFi funds can flood in on a large scale to support the construction of AI networks, but also means that http://USD.AI May become an indispensable part of the AI infrastructure era. Of course, the development of the project still requires time for verification, and we can keep an eye on it. If there is anything about http://USD.AI For ideas on AI stablecoins, please feel free to leave a comment in the comments section! 👏