CHIP shorters are in for a ride, but they're about to get hammered. A lot of people don't really grasp this project, and I often tell everyone to dive deeper into on-chain knowledge. Otherwise, how will you know which project team issued this coin and what the applications are?
Actually, CHIP is the token name, and the project behind it is called Usd.ai. USD.AI is a decentralized AI infrastructure financing protocol (also known as an InfraFi project). Its core goal is to connect DeFi liquidity with real-world AI computing hardware (mainly GPUs), providing non-dilutive financing for AI operators while allowing depositors to earn real yields.
Core Mechanism: AI companies/operators use their GPU hardware and generated cash flow as collateral to borrow funds (non-recourse loans, limited to the collateral assets). Depositors earn real yield from GPU loan interest + treasury yields through the protocol.
Main Tokens: USDai: a fully collateralized synthetic USD stablecoin, over-collateralized by PYUSD (PayPal stablecoin, supported by US Treasuries + cash equivalents) + GPU loan backing. Minting/redeeming is available anytime for DeFi payments and liquidity.
sUSDai: the yield version of USDai, stake USDai to automatically earn yield (current APR ≈ 7.11%, expected ≈ 13.07%), with yields reflected directly in the USDai to sUSDai exchange rate. CHIP: the governance token of the protocol, used to vote on hardware collateral eligibility, interest rate parameters, fee distribution, and other governance matters.
Features: Backed by real-world assets (RWA): GPU hardware serves as collateral, providing transparent, on-chain verifiable yields. Developed by Permian Labs, with the USD.AI Foundation acting as the off-chain steward of the DAO. Currently, TVL is about $344 million, with over 73,000 users and 80+ partners and active lending pipelines.
Overall, the project background is decent. I think the best move the team made was choosing the right timing for the TGE. Currently, liquidity in the crypto space is pretty good, and new coins are generally being pumped, so don’t go shorting new coins.
The Genius project actually has a profit of one times. To be honest, when I saw the project team directly offering a 30% coin on the 13th, I was really disheartened, and I was already prepared to pay the withdrawal fee. Until Genius launched, watching Genius rise from around 0.15u to 0.3u, and then Binance Alpha launched, it rose to 0.8u. I knew this project was stable. I calculated that the profit is around one times, and if I had invested earlier, the profit could be around three times. Considering the rewards along the way or selling at a higher price, the profit might even exceed five times. Given the current market, that's already quite good.