case.fun

With the upcoming launch of $CHIP its important to understand its core function: setting the interest rate of AI. Every USDAI loan has three main values: 1. Type of Chips (only to 8 types of NVIDIA chips are eligible) 2. Loan LTV (70 or 80%) 3. Rental agreement (3 tiers) -Chip value is set by primary or secondary market pricing. -LTV is chosen by the borrower, but limits are set by the protocol. -However, interest rates are a function of the creditworthiness rental agreement aka offtaker. All rental agreements fall into 1 of 3 tiers: Investment Grade: Hyperscalers, sovereign entities, and large technology companies with deep balance sheets and near-certain repayment. These borrowers command the tightest spreads and default risk is lowest. Non-Investment Grade: Emerging operators and companies without established credit profiles. Viable borrowers, but rates are adjusted upward to compensate for elevated risk. On-Demand: Pure spot market exposure. No contracted offtake, no guaranteed revenue. Typically smaller operators with under $50m deployed. Loan-to-value (LTV) ratios are also a factor. A lower LTV reduces the protocol's exposure, leading to a wide range per tier (i.e. 10% vs 12%) $CHIP governance sets the cost of capital for every loan USDAI writes. Rate tiers aren't fixed, they adjust based on underwriting data and curator recommendations, keeping the protocol competitive as market conditions shift. USDAI publishes every rate, every tier, every loan parameter onchain. Institutions are already using it as a benchmark. This is the most transparent interest rate for the buildout of AI and is beginning to play a major part in the speed at which intelligence is formed. Every AI workload, every query, every agent, every token, ultimately exists to pay back the cost of the GPUs that made it possible. All controlled by $CHIP.