GAIB AI Dollar USDC (AIDAUSDC) is a stablecoin receipt token that represents USDC deposited within the GAIB AI protocol. The project utilizes artificial intelligence to manage and stabilize these holdings through algorithmic yield and risk management strategies, with the goal of linking the decentralized finance (DeFi) sector with the AI infrastructure economy.

Overview

GAIB AI Dollar USDC, also known as AID Alpha USDC, functions as a foundational component of the GAIB ecosystem, which aims to transform GPU-based computing infrastructure into a class of yield-generating digital assets. The protocol is designed to tokenize the value of enterprise-grade computing power, generating returns from AI-related operations while maintaining the stability of a token pegged to USDC. AIDAUSDC was introduced as part of GAIB's "AID Alpha" program, an early deposit initiative for its planned synthetic stablecoin, the AI Dollar (AID). The yield generated for depositors is derived from a combination of real-world assets, including U.S. Treasury bills and financing arrangements for high-performance GPUs. ^{[1] [2]}

The AID Alpha program, marketed as "The Spice Harvest," serves as a liquidity bootstrapping phase. Participants deposit stablecoins like USDC and receive AIDAUSDC tokens on a 1:1 basis. These receipt tokens are liquid, transferable, and accrue "Spice," a points-based reward intended to determine future benefits upon the project's official token launch. The program incentivizes early participation through a tiered multiplier system for Spice points. The long-term vision of the GAIB project is to establish a new asset class by tokenizing GPUs and their future cash flows, creating a tradable market for AI compute power. ^[3]

To enhance its utility within the DeFi ecosystem, GAIB has integrated its AID Alpha tokens with external protocols. AIDAUSDC and its USDT counterpart are available on Pendle Finance, a yield-tokenization protocol. This integration allows holders to engage in advanced financial strategies, such as locking in fixed yields, gaining leveraged exposure to Spice point rewards, or earning returns by providing liquidity. The project plans further integrations to support lending, borrowing, and the creation of Principal and Yield Tokens (PT/YT), positioning AID as a versatile asset within the broader DeFi landscape. The ecosystem also includes plans for a staking mechanism called sAID, designed to allow token holders to earn passive income without needing to lock their liquidity. ^{[4] [5]}

Technology

The GAIB ecosystem is built around the concept of tokenizing real-world AI compute resources to generate on-chain yield. AIDAUSDC is a key technical component of its initial phase.

AID Alpha Program (The Spice Harvest)

"The Spice Harvest" is the official name for the AID Alpha program, which functions as the primary liquidity generation event for the AI Dollar (AID). The program is designed to bridge the financing gap for AI infrastructure providers while offering crypto-native users a yield source tied to the AI economy. ^[1]

• Deposit Mechanism: Users deposit supported stablecoins, such as USDC and USDT, into designated vaults on the Ethereum network and other supported blockchains. In return, they receive a 1:1 corresponding AID Alpha (AIDa) receipt token, such as AIDAUSDC for USDC deposits. These receipt tokens are ERC-20 compliant and fully transferable. ^[3]
• Yield Generation: The capital deposited into the vaults is allocated to a blended investment strategy. A portion of the funds is invested in low-risk U.S. Treasury bills, providing a stable baseline return. The remaining funds are used for financing deals with GAIB's cloud partners to acquire enterprise-grade GPUs, capturing yield from the high demand for AI computational power. ^[1]
• Conversion and Redemption: At the conclusion of the campaign, which was projected to last less than three months, participants are given two options. They can either convert their AIDa receipt tokens into the mainnet AID token at a 1:1 ratio or withdraw their initial stablecoin deposit. ^[3]

Spice Points System

To incentivize participation in The Spice Harvest, GAIB implemented a points-based rewards system called "Spice." These points are non-transferable and are intended to determine user benefits, such as a native token airdrop, upon GAIB's future Token Generation Event (TGE). ^[4]

• Accrual Rate: Spice points accrue at a base rate of 1 Spice per dollar deposited, per day. ^[3]
• Multipliers: The program features a tiered multiplier system to reward early depositors. The first deposit cap received a 10x multiplier, the second a 7.5x multiplier, and the third a 5x multiplier. Additional multipliers, such as a 20x multiplier, were offered for certain DeFi activities on Pendle Finance. ^[4]
• Referral Program: A two-tiered referral system was established to encourage network growth. Users earn 20% of the Spice accumulated by their direct referrals and 10% of the Spice accumulated by their second-order referrals (the referrals of their direct referrals). ^[3]

Key Components

The GAIB ecosystem consists of several interconnected tokens and mechanisms.

• AIDAUSDC: An ERC-20 receipt token on the Ethereum blockchain that represents a 1:1 claim on USDC deposited into the AID Alpha program. It is the primary instrument for early participants to gain exposure to the protocol's yield and Spice rewards. ^[5]
• AID (AI Synthetic Dollar): The forthcoming primary synthetic stablecoin of the GAIB ecosystem. It is designed to be a stable, yield-bearing asset that is deeply integrated across various DeFi protocols for lending, borrowing, and other financial activities. AIDa tokens like AIDAUSDC are intended to be convertible into AID. ^[1]
• sAID: A planned liquid staking mechanism for the AID token. The sAID token will allow AID holders to earn a share of the protocol's revenue as passive income while maintaining the liquidity of their staked assets. ^[3]

DeFi Integration

A core part of GAIB's strategy involves integrating its tokens with established DeFi protocols to enhance their utility and create more complex financial products. The primary integration during the AID Alpha phase was with Pendle Finance. ^[4]

Yield Tokenization on Pendle

The integration with Pendle Finance allows AIDAUSDC holders to tokenize the future yield (Spice points) of their assets. When AIDAUSDC is deposited into Pendle, it is split into two distinct components: a Principal Token (PT) and a Yield Token (YT).

• Principal Token (PT-AIDAUSDC): This token represents the principal of the deposited AIDAUSDC and is redeemable for the underlying asset at a future maturity date. It functions similarly to a zero-coupon bond, allowing users to purchase AIDAUSDC at a discount to its current market value and lock in a fixed yield. Holders of PT-AIDAUSDC forfeit any claim to the variable Spice point rewards generated by the underlying asset. ^[4]
• Yield Token (YT-AIDAUSDC): This token represents the right to all future yield, in this case, the Spice points, generated by the underlying AIDAUSDC until the maturity date. By holding YT-AIDAUSDC, users gain leveraged exposure to Spice rewards without needing to own the principal asset. The value of the YT decays over time and becomes zero at maturity. ^[4]

Liquidity Provision

Users can also provide liquidity to the AIDAUSDC pools on Pendle Finance. Liquidity Providers (LPs) earn returns from multiple sources simultaneously:

1. Swap Fees: A percentage of the fees generated from the trading of PT-AIDAUSDC and YT-AIDAUSDC within the pool.
2. PT Fixed Yield: A fixed yield generated from the Principal Token portion of the LP position.
3. PENDLE Rewards: Emissions of Pendle's native token, PENDLE. These rewards can be increased by locking PENDLE for vePENDLE or by using third-party yield-boosting platforms such as Penpie and Equilibria.
4. Spice Rewards: The underlying asset portion of the LP position continues to accrue Spice points, often at a boosted multiplier set by the GAIB project.

This multi-faceted reward structure allows LPs to earn a complex yield stream derived from trading activity, fixed income, protocol incentives, and the GAIB points system. ^[4]