During this cycle, the prices of AI concept tokens surged, but there were many challenges behind: AI projects lack stable financial infrastructure, which hinders the healthy development of the ecosystem to some extent. For example, using the computing power of AI projects requires payment in corresponding tokens. However, the price of AI tokens may fluctuate by 20% in a single day, which means that users' costs are extremely unstable. For developers/miners, they earn AI token rewards, but they need to pay for servers, labor, and other costs, which all need to be converted into stablecoins. If the price of AI tokens plummets, their operations will be in trouble.

It is against this backdrop that the @theMAITRIXai protocol was born. This is a multi-currency stablecoin platform aimed at the AI ecosystem, allowing AI projects to issue exclusive smart stablecoins through their native tokens, and it has gained investment support from well-known institutions such as Dragonfly and DCG.

In simple terms, AI projects can inject their own tokens into MAITRIX to mint stablecoins pegged to the dollar (referred to as 'AI USD'), which can then be used for payments, trading, and DeFi activities.

⭐️ 1. Benefits of AI projects issuing their own stablecoins

Directly using traditional stablecoins like USDT/USDC may subject AI projects to the risks of centralized third parties. The model of issuing 'native stablecoins' for AI projects has the following advantages:

1. Stable Medium of Exchange: Provides users with a stable currency that is immune to the drastic fluctuations of project tokens, ensuring smooth payments and settlements within the ecosystem.

2. Value Growth: AI stablecoins can connect with various DeFi protocols, allowing the token economy of AI projects to integrate into richer financial scenarios.

MAITRIX achieves the above concepts by providing two core functional modules:

- Stablecoin Launchpad, To B: Any AI project can create a stablecoin contract supported by its native token through MAITRIX.

- Stablecoin Hub, To C: Token holders can mint supported AI USDs on MAITRIX and stake them for rewards.

⭐️ 2. Stablecoin minting mechanism and token economic model

Currently, MAITRIX uses two main stable mechanisms to mint AI USD:

1. Mint-and-Burn Equilibrium: This model requires that every AI USD is backed by an equivalent reserve asset, meaning that for every 1 dollar of stablecoin issued, there is more than 1 dollar of project tokens as reserves, forming complete collateralization.

This mechanism is applicable to AI project tokens supported by VC funding, which usually have more stable prices.

2. Collateralized Debt Position (CDP): Similar to the principle of MakerDAO issuing DAI, users lock AI project tokens as collateral to borrow (mint) stablecoins, and must maintain a certain over-collateralization ratio.

This mechanism is specifically designed for fairly issued AI tokens with high price volatility.

The token economy design of MAITRIX revolves around Pill points and governance tokens. Pill points currently serve as user incentives during the testnet phase, which can be obtained by staking AI stablecoins, providing liquidity, and other platform activities. Pill points cannot be directly traded, but in the future, once MAITRIX officially issues governance tokens, these points will be converted into real and tradable governance tokens at a certain ratio. It can be said that Pill points are the early 'equity certificates' of the MAITRIX ecosystem.

⭐️ 3. Testnet Participation Methods

MAITRIX has opened the testnet, and any interested users can participate without barriers, accumulating Pill points to prepare for future mainnet rewards.

1. Claim Test Tokens: In the MAITRIX testnet, open the 'Faucet' page to claim test ATH tokens.

2. Mint Stablecoins: Click 'Mint AUSD' on the platform homepage to enter the minting page and mint AUSD test stablecoins in equivalent amounts.

3. Stake AUSD: Switch to the 'Stake AUSD' page, and the staked AUSD will be locked in the earnings contract to start generating interest.

4. View Earnings: After staking for a period of time, users can check their earnings on the 'Earn' page, including daily AUSD interest generated and Pill points. Earnings during the testnet phase are simulated.

5. Unstake and Redeem: Users need to wait for a 14-day lock-up period to unstake AUSD.

Aethir USD is the first smart stablecoin case on the MAITRIX testnet. Currently, the testnet also provides various stablecoins from different AI projects, including VanaUSD, Virtual USD, ai16z USD, etc., with a participation process essentially the same as AUSD.

⭐️ 4. Risk Warning

While MAITRIX's 'algorithm + collateral' smart stablecoin model is innovative, it still faces risks of decoupling and liquidation under extreme market volatility. Additionally, the smart contract risks of new protocols require time to validate and undergo multiple audits. Furthermore, the high yields of the testnet are for testing purposes only, and the mainnet's return rates may be adjusted. It is recommended that everyone participate rationally and diversify risks.

MAITRIX takes smart stablecoins as an entry point, filling the gap for AI projects to enter the DeFi world. Looking to the future, perhaps AI-driven decentralized applications will also issue their own stablecoins through MAITRIX, forming an interconnected DeFAI network, and we can stay tuned.

If you have thoughts about MAITRIX or AI stablecoins, feel free to leave a comment! 👏