# Overview

## Depositor Overview

USD.AI facilitates yield bearing tokenized credit instruments that provide users with access to cash flows tied to compute hardware. Mint USDai, stake for sUSDai, and collect yield generated by the protocol's infrastructure lending book. 

The protocol has three native tokenized instruments. USDai, a non-yield bearing synthetic dollar, sUSDai, its yield bearing counterpart, and CHIP, the governance token of the protocol

### USDai

USDai is a stablecoin backed 1:1 by US Treasuries and cash equivalents. Mint it by depositing PYUSD. Redeem it for PYUSD at any time. 

USDai does not accrue yield on its own, but it is the entry point to everything else in the protocol. Use it to move between DeFi positions, settle transactions, or hold before converting to sUSDai.

### sUSDai

sUSDai is the yield-bearing version of USDai. Deposit USDai into the staking module and receive sUSDai in return. 

As the protocol's underlying loans and Treasury bills generate yield, that yield is reflected in the sUSDai token through its exchange ratio with USDai. Users do not claim yield manually, rather, yield compounds into the token's underlying NAV reflected in the exchange ratio. 

sUSDai yield comes from two sources. 

1. **GPU loan interest:** borrowers pay interest on hardware-backed loans
2. **Treasury yield:** USDai reserves are backed by US Treasuries, and that yield also accrues to sUSDai holders, as well as the Treasuries behind undeployed sUSDai backing

#### USDai/sUSDai use cases throughout DeFi

USDai and sUSDai are composable across DeFi. Holding it is the simplest option, but there are several ways to put it to work:

* **Mint & Hold:** sUSDai accrues yield automatically with no staking, claiming, or active actions required. 
* **Supply as collateral:** Deposit on Morpho, Fluid, or Euler to borrow stablecoins against your position while continuing to earn the base yield.
* **Trade fixed yield:** Use Pendle to lock in a fixed APY on your assets via PTs, or take leveraged exposure to the variable rate via YT.
* **Provide liquidity:** Add assets to Curve, Fluid DEX, or Uni V4 pools to earn trading fees on top of base yield.
* **Loop for amplified yield:** Use either as collateral to borrow stablecoins, convert back to sUSDai, and redeposit, compounding your yield exposure. See loops.gpu.credit for current APYs across available strategies.
* **Earn Allo Points:** All sUSDai activity earns Allo Season 2 points. Multipliers vary by protocol and strategy.

### CHIP

CHIP is the governance token of the [USD.AI](http://usd.ai) protocol. CHIP holders vote on the parameters that determine sUSDai yield and borrower rates and loan terms: hardware approval criteria, interest rate ranges, and overall protocol requirements. 

The yield sUSDai holders earn is a direct output of decisions made through CHIP governance.

### Getting Started

New to the protocol? The sections below walk through each asset and how to use them:

* [USDai](https://docs.usd.ai/depositor/usdai) — how to mint, redeem, and use the base stablecoin
* [sUSDai](https://docs.usd.ai/depositor/susdai) — how to stake, yield ranges, and DeFi composability
* [CHIP](https://docs.usd.ai/governance/chip) — governance, staking, and the Allo Points program