🔥 Depth interpretation of AI stablecoin early project 02—— USD.AI @USDai_Official

Currently, the rapid development of AI has created 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. The birth of USD.AI targets the financing pain points of AI hardware and DePIN. Projects such as GPU computing clusters and new types of IoT networks often have huge capital expenditures, yet it is difficult to obtain loans from traditional banks (even if they have stable cash flows). At the same time, a large amount of DeFi funds lack reliable high-yield destinations. USD.AI connects the two: by using a protocol pool, users lend their stablecoins to AI infrastructure operators who have been rigorously selected, using their expensive hardware as collateral. This way, these operators obtain the much-needed expansion funds, allowing them to purchase more equipment and scale up their computing power, while the contributing crypto users earn high lending interest returns, achieving a win-win situation. ⭐️ 1. Core Mechanism USD.AI adopts a dual-token model, issuing two types of stablecoin assets: USDai and sUSDai, allowing users to deposit stablecoins to mint USDai; staking USDai can earn sUSDai.

• USDai is a low-risk synthetic US dollar, collateralized by interest-bearing government bonds (such as the "M" token of M^0), but the underlying government bond yields generated are not distributed to USDai holders. It offers stability and liquidity. Redeemable at any time.
• sUSDai is an "income version" token aimed at investors, with funds directed towards loans for AI computing power, energy, communication, and other infrastructure, generating returns from these tangible assets. Therefore, the income sources for sUSDai consist of two parts: first, the returns generated from the underlying government bonds of USDai, and second, the interest from loans on physical infrastructure 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. (A detailed introduction to QEV will be provided in the next section.) In summary, USD.AI aims to transform AI hardware, computing devices, and DePIN assets that originally lack liquidity into efficient, liquid productive capital through the dual-token USDai/sUSDai. ⭐️ 2. Technical Interpretation In terms of technical mechanism design, USD.AI introduces the CALIBER asset framework and QEV redemption mechanism, providing a safety net and liquidity assurance for the aforementioned model. The CALIBER framework is a solution for digitizing and legally custodizing physical assets. When a borrower uses AI hardware as collateral for a loan, USD.AI will mint an NFT ownership certificate representing that asset on the blockchain. In this way, if the borrower defaults, the agreement can legally reclaim and dispose of the equipment to repay investors. From the user's perspective, CALIBER means that the assets behind sUSDai are real, secured hardware, enhancing the overall credibility of the system. The QEV mechanism is used to manage the redemption liquidity of sUSDai. Unlike the first-come-first-served queues of general stablecoins, USD.AI has designed the redemption as a blind auction held once a month, where the protocol packages the funds available for redemption during that period and allows holders who wish to exit to bid anonymously for redemption. The higher the bid (the less interest the bidder is willing to forgo), the higher the priority for exchange, effectively determining who exits first through market means. This auction mechanism prevents panic withdrawals and incentivizes long-term holding. ⭐️ 3. How to Participate Currently, USD.AI is in the internal testing phase, and participants can mint USDai and sUSDai on Arbitrum. Since it is still a closed test, the official public application interface has not yet been opened, and ordinary users need to fill out a whitelist on the official website to strive for participation eligibility. According to the roadmap, the project plans to soon launch public testing, going live on the Ethereum mainnet, Berachain, and more chains, while also introducing a points reward mechanism called Cores—early beta testers and contributors will earn points based on their activities, which will be used for future rewards. ⭐️ 4. Risk Warning Liquidity Lag Risk: Due to the closed-cycle redemption design of sUSDai, normally, a redemption requires waiting for one cycle (approximately 30 days) to withdraw the underlying assets. If there is a concentrated redemption demand in a short period, the liquidity of users' funds will be restricted. To address this, the project has introduced the QEV auction mechanism to buffer, but secondary market liquidity may still experience temporary shortages in extreme cases, requiring certain liquidity expectation management. Early Agreement Risks: USD.AI is still in the early testing phase, and its smart contracts, auction mechanisms, and other aspects may have undisclosed issues that need to be tested over time. Before participating, one should be mentally prepared and conduct a risk assessment for possible extreme situations. ⭐️ 5. Future Outlook With the explosive growth in demand for artificial intelligence infrastructure, the model of USD.AI is functioning well, which not only means that DeFi funds can flow in on a large scale to support the construction of AI networks, but also that USD.AI may become an indispensable part of the AI infrastructure era. Of course, the project's development still requires the test of time, and we can keep an eye on it. If you have any thoughts on USD.AI or AI stablecoins, feel free to leave a comment! 👏