What is the flywheel of Trust AI Protocol (Use-TAiUSD-To-Earn)
Last updated
Last updated
Use-TAiUSD-To-Earn (Use-To-Earn) is a brand-new stablecoin tokenomic concept invented by TiTi Protocol, which means users can both passively and actively earn TiTi and protocol fees while they are using stablecoins as usual. In the TiTi Protocol, the Use-To-Earn oriented behaviors are multiple and varied. For example, after you enter the , you may swap USDC to mint TAiUSD. In this process, you have accidentally triggered two behaviors of Use-to-Earn: Buy TAiUSD in TiTi-AMMs (Swap) and hold TAiUSD. This is what we said, Use-to-Earn is easy to trigger accidentally.
Use-to-earn is the key part in our design. The system can collect fees and capture value by our reserve from other yield farming aggregators. Most of the parts are used to reward TAiUSD users. For the users, they are motivated to use TAiUSD more often because of higher revenue. As a result, TAiUSD will enjoy a higher cap, transaction volume and large holder base. Meaning the user adoption will be higher, which will enable the protocol to collect or capture more fees to motivate them. Economically speaking, it’s a virtuous cycle.
To be simple, Use-to-earn means that users can earn both passive and positive revenue or rewards by simply holding or using the stablecoin issued by our protocol.
The technical solution of Use-To-Earn is based on the implementation of both on-chain and off-chain. The on-chain part is verified by means of Merkle Proof. The off-chain part is responsible for the distribution of incentives based on the user’s behaviors using TAiUSD.
The user’s incentive behaviors and incentive algorithm are disclosed to the community on Snapshot. Such a technical solution ensures the fairness and transparency of the entire process. At the same time, it allows the protocol to carry more complex incentive models, which also provides greater flexibility for Trust AI Protocol’s market operations. Such as the protocol can encourage incentive users to use TAiUSD to buy NFT, or stake TAiUSD to an external DeFi product, etc.;
Regarding the setting of the incentive algorithm, in the early stage, it is set based on the team’s major concern to avoid attacks or abuse by users. The core is to incentivize users’ behaviors with TAiUSD that are in the benefit of the protocol and users. It is not necessary that users frequently mint TAiUSD from Trust AI-AMMs. They can buy TAiUSD in 2nd markets as well. As a trading medium, they can choose to use TAiUSD in other scenarios.
For example if you are farming with 10 k $USDT and 10k TAiUSD in the Aave, your normal earning let's assume, is $10 with USDT. But with TAiUSD, your earning will be always more $10, be it $12 or $11. The extra $1~$2 is from use-to-earn and stems from protocol fee. It seems that TAiUSD is an inter-bearing stablecoin pegging to $1, this allows it to resist inflation with internal design. But the algorithm and design is much more complex, it’s really something exciting and new that can make a difference.
In the bootstrapping phase, there are mainly three behaviors that are counted in Use-To-Earn: Buy (Mint) TAiUSD in Trust AI-AMMs (Swap), hold TAiUSD, buy Trust AI in Uniswap. In Trust AIProtocol, when users buy and sell TAiUSD in Trust AI-AMMs (Swap), it means that they mint and redeem TAiUSD. Specifically, when users perform the above three operations, they will be able to obtain additional income. In the early stage, the reward for Use-To-Earn is $TAItoken; in the later stage, the reward for Use-To-Earn is $TAI token & protocol fee. The protocol fee comes from PAV, Protocol Added Value. Because, in Swap (Trust AI-AMMs), Users’ trading only counterparty is Trust AI-AMM itself. Trust AI-AMMs is able to, always & sustainably, collect the PAV trading slippage instead of being taken away by sandwich or arbitrage bots. This earning mechanism can greatly promote the adoption of TAiUSD. In the middle and later stages of project development, the behavior of Use-To-Earn will be more abundant.
1. Simple operation, easy to trigger, routine operation may trigger Use-To-Earn to earn income
As long as any defi users use Trust AI mainnet product, it is possible to passively trigger Use-to-Earn. The operation is very simple and the threshold is low. Any of the three behaviors of Buy TAiUSD in Trust AI-AMMs (Swap), TAiUSD Holder, and Buy TAI in Uniswap can trigger Use-to-Earn, and you can earn income . The more times you trigger, the more rewards you will get.
2️. No need to open a position, no collateral required, claim rewards at the end of each Cycle
Unlike some stablecoin projects, Use-to-Earn does not require cumbersome operations such as opening positions and staking. Simply buying TAI & TAiUSD and holding the stablecoin TAiUSD can trigger Use-to-Earn. At the same time, the technical architecture also guarantees the distribution of protocol fees can be adaptable to more complex incentive models, which also provides greater flexibility for Trust AIProtocol’s organic growth and expansion.
3️. The income is multiple, the early income is $TAI, and the later income is protocol fee and more
Use-to-Earn rewards are very multiple and varied. In the early stage of the Trust AI Protocol mainnet launch, the reward for Use-to-Earn will be TAI token, which is the governance token of the protocol. In the later stage of the Trust AI Protocol mainnet launch, the reward for Use-to-Earn will be USDC, which comes from the protocol fee, that is, slippage. After the project introduces multi-assets, the income will be diverse, such as WBTC, eth and other native crypto assets.
4️. Interest-bearing decentralized stablecoin, which greatly promotes the adoption of stablecoin TAiUSD
Use-to-earn, the first ever stablecoin tokenomic design that will tremendously boost decentralized stablecoin user adoption. TAiUSD is actually an inherently interest-bearing decentralized stablecoin. Users will earn additional interest during the process of using, trading and holding. Currently, there is a lack of such decentralized stablecoins in the market. The use-to-earn design can effectively improve the adoption and market competitiveness of TAiUSD.