Overview
Hello Curve! This is proposal to add a gauge for USD.ai/USDC & sUSD.ai/USDC pool to the GaugeController, enabling CRV rewards and voting to enhance liquidity and drive mutual growth for both, Curve & USD.AI ecosystems.
Links:
Product Background
USD.AI introduces sUSDai, a yield-bearing token delivering 15–25% APY, backed by a collateral mix of U.S. Treasuries and loans secured by income-generating GPU assets. This innovative approach combines overcollateralized stablecoin sustainability with high returns from hardware infrastructure loans, making sUSDai highly attractive yield opportunity. We also offer USDai, a non-yielding synthetic dollar backed by 1:1 with USDC, designed for DeFi integrations and fast redemptions.
Our novel offchain-onchain framework, CALIBER, ensures collateral integrity through full onchain representation of loan-securing assets, verified via ownership, valuation, and insurance mechanisms. This transparency and security position USD.AI as a trusted & valuable Curve partner.
Motivation
We aim to establish Curve as the primary liquidity hub for USD.ai, enabling seamless swaps and deeper integration into DeFi protocols. This gauge will:
- Enhance Liquidity: Attract Hardware Infra-focused LPs and institutions exploring tokenized hardware, attracting new liquidity flow on Curve.
- Offer High-Yield Opportunities: Provide LPs with 15–25% APY through sUSDai, one of the highest stablecoin yields today, alongside CRV rewards.
- Introduce Innovation: Bring USD.AI’s Hardware Infrastructure-backed yield narrative to Curve, bridging physical assets with DeFi for sustainable growth and diversification.
- Support DeFi Integration: Enable broader adoption of USD.ai on Curve Lend & other protocols, yield aggregators, and structured products by ensuring deep liquidity and stable pricing & peg.
Specifications
- Governance: USD.AI currently operates with a multi-signature wallet for key contract controls. Future governance upgrades will involve community-driven mechanisms, with details to be announced.
- Audits: Our protocol has undergone rigorous audits to ensure security: KTL & Cantina
- Onchain Security: USD.AI employs onchain monitoring to safeguard smart contracts, with full transparency of collateral via the CALIBER framework.
Risk Mitigation
| Risk Type | Mitigation |
|---|---|
| Economic | 70% Loan-to-Value ratio providing safety margin |
| Legal | Bailment NFT structure securing asset ownership |
| Liquidity | QEV mechanism managing redemption queues |
| Default | Insurance fund + governance token backstop |
Growth Strategy
Three-phase deployment plan:
- Initial Launch: 100% T-bill backing via M^0
- Transition: Gradual introduction of infrastructure loans
- Maturity: Optimization of yield through QEV mechanism
Team & Backing
USD.AI is developed by Permian Labs with:
- $25M in funding by Dragonfly, DCG, Nascent, and Delphi
- Partnership with M^0 Protocol
- Team comes from DRW, Deutsche Bank, Nansen, Balancer.
- Multiple hardware infra partnerships for loan origination
Conclusion
USD.AI represents a strategic addition to Curve’s ecosystem, bringing real-world infrastructure yield while maintaining the stability expected from Curve pools. The proposed gauge will help bootstrap liquidity and create a sustainable yield source for veCRV (CRV) holders.
For detailed documentation: https://docs.usd.ai