Collateralization

USDAI’s stability hinges on its robust collateralization model, ensuring every token in circulation is backed by real GPU compute resources.

Source of Collateral: USDAI is fully backed by GPU compute resources contributed by a decentralized network of providers within GPU.NET. These providers—ranging from large-scale data centers to individual GPU owners—lock their compute capacity into the system, which is then tokenized and used to collateralize USDAI.
Real-World Utility: Unlike fiat-backed stablecoins relying on bank reserves or crypto-backed stablecoins subject to market volatility, USDAI’s backing is a scarce, in-demand asset with intrinsic utility. This makes it uniquely suited for AI-driven economies.

Collateral Ratio: To safeguard against fluctuations in compute availability or demand, USDAI maintains a collateral ratio exceeding 100%. For instance, if $100 worth of USDAI is in circulation, the network might hold $120 worth of tokenized compute credits as collateral.
Dynamic Adjustments: The collateral ratio is not static—it adjusts dynamically based on real-time supply and demand signals. If demand for GPU compute spikes (e.g., during a surge in AI model training), the system increases overcollateralization by incentivizing more providers to contribute resources, ensuring USDAI remains fully backed.

Smart Contracts: Collateral is managed via audited smart contracts on GPU.NET’s supported blockchains (Ethereum, Solana, Polygon, GANChain). These contracts lock compute credits and monitor the collateral ratio in real time.
Transparency: Users can verify USDAI’s backing through on-chain dashboards, which display the total value of tokenized compute credits against circulating USDAI supply.

Last updated 3 months ago

USDAI’s stability hinges on its robust collateralization model, ensuring every token in circulation is backed by real GPU compute resources.

Source of Collateral: USDAI is fully backed by GPU compute resources contributed by a decentralized network of providers within GPU.NET. These providers—ranging from large-scale data centers to individual GPU owners—lock their compute capacity into the system, which is then tokenized and used to collateralize USDAI.
Real-World Utility: Unlike fiat-backed stablecoins relying on bank reserves or crypto-backed stablecoins subject to market volatility, USDAI’s backing is a scarce, in-demand asset with intrinsic utility. This makes it uniquely suited for AI-driven economies.

Collateral Ratio: To safeguard against fluctuations in compute availability or demand, USDAI maintains a collateral ratio exceeding 100%. For instance, if $100 worth of USDAI is in circulation, the network might hold $120 worth of tokenized compute credits as collateral.
Dynamic Adjustments: The collateral ratio is not static—it adjusts dynamically based on real-time supply and demand signals. If demand for GPU compute spikes (e.g., during a surge in AI model training), the system increases overcollateralization by incentivizing more providers to contribute resources, ensuring USDAI remains fully backed.

Smart Contracts: Collateral is managed via audited smart contracts on GPU.NET’s supported blockchains (Ethereum, Solana, Polygon, GANChain). These contracts lock compute credits and monitor the collateral ratio in real time.
Transparency: Users can verify USDAI’s backing through on-chain dashboards, which display the total value of tokenized compute credits against circulating USDAI supply.

Last updated 3 months ago