The Interest Rate of AI

1. CHIP: the governing token for the USD.AI protocol

CHIP is the utility and governance token of USD.AI. It coordinates the standards, risk parameters, revenue fee streams, and market plumbing that let GPU-backed loans become standardized, liquid, and continuously priced, so AI infrastructure is not constrained by bespoke, illiquid private credit.

2. Interest rate controls

CHIP governs the high-level parameters that shape the protocol’s reference rate for GPU credit. Pricing is set at the asset-tier level rather than deal-by-deal, so the market can discover a coherent curve across GPU generations, loan terms, and risk profiles. USD.AI is building a conforming market for GPU loans. CHIP governs the conforming rulebook that makes loans eligible for pooling and distribution: collateral eligibility, underwriting thresholds, interest rate sheet, reporting requirements, etc.

3. Revenue governance

CHIP governs the protocol-level fee surfaces created by origination, structuring and distribution: origination and servicing fees, net interest margin, admin fee, QEV fees, pool administration and structuring fees, auction and liquidation fees, and liquidity and redemption infrastructure fees, with onchain rules defining how fees are set and routed. These can include buybacks, expense payments, reinvestment, and portfolio management (such as tokenized equity received as a origination fee).

4. Staking module

CHIP can be staked into a staking module inspired by Aave to support protocol safety and alignment. Stakers earn rewards sourced from protocol fees and any explicitly designated incentives, and accept predefined lock and slashing conditions tied to objective shortfall events.