1d ago
USDai is a DeFi protocol that funds AI compute infrastructure, GPU clusters, data centers used for training and running AI models
>Issues a synthetic dollar USDai, backed by loans secured against AI hardware, and @m0 US T-Bills; current APR 13.03%
>Vision: Enable AI infrastructure funding faster by using DeFi rails instead of traditional banks
Let's break down all core features, revenue, risks, and token🧵:
Revenue Model
>Interest payments on active GPU-backed loans, generating about 6–20% APY
>Underwriting, admin fees for loan origination, and risk management
>Main yield comes from @m0 US T-Bills. In the future, most funds will be deployed to hardware loans
>Token Governance: Protocols can “bribe” USDai with better APY to get more liquidity directed their way
USDai Token
>Acts as governance token, directing liquidity via gauge-weighted voting
>Backstops solvency as an equity layer in defaults
>Receives a share of protocol cash flow (interest, bribes)
>Enables project incentives by letting DeFi Protocols bribe token holders for debt allocation
Risks
>The 70% LTV cap ensures lenders are protected if GPU prices fall (safety cushion, insurance, backup tokens)
>On-chain repossession and insurance funds prevent bad debt and delays
2.39K
4
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.