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Exploring USD.AI: YZi Labs Investment Secured, Enjoying Both Stable Yield and AI Bonus

Exploring USD.AI: YZi Labs Investment Secured, Enjoying Both Stable Yield and AI Bonus

BlockBeatsBlockBeats2025/08/27 04:17
By:BlockBeats

USD.AI generates revenue through AI hardware staking, filling the gap in compute resource financing.

Original Title: "YZi Labs Investment Received, Exploring USD.AI Stablecoin New Approach"
Original Author: Umbrella, DeepTide TechFlow


On August 26, YZi Labs announced a strategic investment in USD.AI, a stablecoin protocol that provides hardware-backed financing for AI infrastructure.


Exploring USD.AI: YZi Labs Investment Secured, Enjoying Both Stable Yield and AI Bonus image 0


According to Coingecko data, the current global stablecoin market cap has exceeded $285 billion. Giants such as Circle and Kraken are also stepping into the stablecoin payment chain race.


However, the vast majority of current stablecoin projects still follow the traditional model of anchoring to the US dollar, US bonds, etc., with a lack of overall innovation and a general "lack of imagination." In this context, a unique challenger is entering the market with a completely new approach.


Recently, a unique stablecoin project called USD.AI, which combines DePIN, RWA, and AI, has sparked intense market discussions. It not only anchors to the US dollar but also generates revenue through AI hardware collateral, filling the gap in financing for computational resources.


Recently, USD.AI officially launched and opened its deposit channel, rapidly gaining popularity. This may bring new opportunities for AI-stablecoin integration.


Project Background


According to Rootdata, the project was founded in 2024. Regarding the project team, one of the core founders of USD.AI, David Choi, is the co-founder and CEO of the well-known NFT lending platform MetaStreer and a former investment banking analyst at Deutsche Bank.


What truly put USD.AI in the spotlight is its remarkable funding background.


On the 14th of this month, USD.AI announced the completion of a $13.4 million Series A financing round, led by Framework Ventures.


As an investment firm focusing on DeFi and infrastructure, Framework Ventures has supported star projects such as Uniswap and ChainLink. Their participation in leading the investment in USD.AI reflects institutional recognition of the project's innovative value. The lineup of other investors is equally strong, including well-known crypto VC Dragonfly, Layer2 network giant Arbitrum, and the recently IPO-listed popular exchange Bullish.


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The star-studded lineup of this round of funding has not only injected substantial resources into USD.AI but also validated the attractiveness of the DePIN stablecoin project combining AI to top-tier capital, significantly raising the market's expectations. Following the release of funding information, the USD.AI team struck while the iron was hot and officially launched on the 19th, sparking widespread market discussion.


Operation Principle and Core Mechanism


Against the backdrop of growing AI compute demand, USD.AI's design integrates the stablecoin protocol with AI infrastructure funding to address a problem that other projects in the current market have not ventured into:


Small and medium-sized AI companies possess valuable GPU hardware but struggle to obtain operational funding through traditional channels.


The core goal of the project is to support AI companies' hardware procurement and operations through on-chain capital, filling the financing gap in traditional finance in the new AI economy, while maintaining the stablecoin's low-risk characteristics.


USD.AI revolves around the "Collateral-Mint-Investment-Yield" closed-loop system, combining the current popular concepts of RWA and AI. In this wave of stablecoin frenzy, it showcases its unique innovative advantage.


USD.AI's operation principle starts with users collateralizing USDT or USDC stablecoins at a 1:1 ratio to mint USDai stablecoins. USDai is backed by U.S. Treasury bonds and mainstream stablecoins to anchor the USD price, possess instant redemption capability and a certain level of liquidity, suitable for trading or providing liquidity in the DeFi ecosystem. Users can further choose to stake USDai to receive sUSDai tokens, participate in other DeFi projects for additional yield, achieving a "multi-benefit" effect.


USD.AI leverages user deposits for investment in two asset classes: firstly, providing loans to AI companies for GPU hardware purchases, generating high interest. The current official website displays an annualized interest rate of 6.96%; secondly, idle funds will be used to invest in U.S. Treasury bonds, providing stable base returns. sUSDai holders can amplify their yield through DeFi protocols, with the project's website indicating a target annualized return of 15%-25%. USDai holders, on the other hand, enjoy low-risk stable returns.


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USD.AI's core mechanism includes the following key components to ensure its innovation and stability:


1. Dual-token system: USDai serves as a low-risk stablecoin suitable for users seeking stability; sUSDai targets investors looking for high returns, offering both flexibility and risk exposure. This design meets the needs of users with different risk preferences while maintaining compatibility with the DeFi ecosystem.


2. Asset Tokenization with the Caliber Framework: Through the CALIBER framework, USD.AI will tokenize physical assets such as AI hardware into on-chain assets, combining legal and technical means to ensure asset ownership is transparent and legally enforceable. An on-chain insurance mechanism further reduces default risks.


3. QEV Redemption Mechanism: To address the long-term nature and low liquidity of AI infrastructure assets, USD.AI has designed the QEV mechanism to manage sUSDai redemption requests in a market-driven manner, avoiding the inefficiency of a first-come, first-served approach, while ensuring protocol fairness and stability.


4. FiLo Curator Extension Mechanism: This mechanism allows the protocol to onboard new borrowers at scale, expanding the AI infrastructure investment portfolio. It also maintains user interests through structural protection and risk alignment mechanisms, ensuring revenue diversification and sustainability.


In summary, funds deposited into USD.AI by users will be lent to AI companies in need of GPU and other hardware device computing power to earn interest. This process is fully transparent and verifiable. If funds are idle, they will be used to purchase US Treasury bonds to secure a minimum return.


USD.AI's innovative mechanisms give it a unique competitive advantage. Compared to traditional stablecoin projects, USD.AI achieves higher returns through AI infrastructure investment. In contrast to high-risk DeFi protocols, its risk isolation and insurance mechanisms significantly reduce systemic risks.


USD.AI's initiatives not only inject new vitality into the stablecoin market but also provide a scalable solution to the capital needs of the AI economy. It is poised to become a pioneering project in the integration of stablecoins and AI infrastructure.


Participation Method


The USD.AI project is currently open for user deposits and invites other users to participate in the USD.AI reward system through Allo points.


For more advanced ways to earn Allo points, you can check out the official tweet for an introduction video.


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Currently, purchasing USDai or sUSDai will earn you qUSDai, which is a deposit queuing proof that will automatically convert to the corresponding token within 24 hours.


USD.AI currently has a total deposit limit of $100 million. Since all current funds are in qUSDai status, the current TVL only shows the $52 million deposited during the beta test period.


Exploring USD.AI: YZi Labs Investment Secured, Enjoying Both Stable Yield and AI Bonus image 4


Market Discussion


The current market sentiment towards the USD.AI project is polarized.


Supporting users generally believe that USD.AI is a stablecoin project with unique innovation, combining the current hot AI concept. This allows users to enjoy AI benefits while ensuring stable returns. The project offers multiple participation strategies so that users of different types can find a suitable solution, combining the stability of a stablecoin with high-risk, high-return options.


Exploring USD.AI: YZi Labs Investment Secured, Enjoying Both Stable Yield and AI Bonus image 5


On the other hand, users holding opposing views believe that based on the information currently disclosed by USD.AI, the team may be predominantly of Chinese descent. They think the project is merely stacking popular concepts without substantial innovation.


Exploring USD.AI: YZi Labs Investment Secured, Enjoying Both Stable Yield and AI Bonus image 6


Interestingly, David, the core founder of USD.AI, has just replied to this FUD tweet, stating that he is a Korean-American and indicating that the project is headquartered in New York but is very willing to address inquiries from Chinese users.


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In my opinion, USD.AI does indeed offer a different answer to the popular stablecoin race, but whether it can gain market favor and recognition remains to be seen. It will depend on whether people are willing to "vote with their feet" and quickly fill the $100 million TVL limit.


Its success or failure will also become a touchstone for measuring the market's acceptance of the emerging narrative of "AI Infrastructure + Stablecoin".


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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