Farming @USDai_Official with @pendle_fi YTs. Some interesting observations: - 99.9% of usdai reserve is currently in tbill with only 0.1% allocated to GPU-backed loans, making it relatively safe as a yield-bearing stablecoin. The upcoming loans(~32M) will bump the allocation to 5%, increase protocol yield, but will also increase risk exposure as GPU collateral is highly depreciation-prone despite good loan APR (12%+). - Usdai offsets the depreciation by using principal amortization over 3 years, which is much shorter than common GPU lifespan of 5-7 years. However, GPU price can drop sharply driven by new hardware generations (~every 2 years and accelerating), which could result in losing principal if borrower defaults - Primary risk vectors are collateral value collapse + borrower default, which is handled by risk tranches: equity from borrower, FiLo curator (first lost capital from underwriter) and usdai holders (from junior to senior) - Yield is amplified from 3.6% to 11.5% due to yield being only distributed to susdai. ~1/3 usdai is staked, while non-staked usdai subsidizes yield for stakers - ALLO is one of the most interesting incentive program I’ve seen where you get to choose your own farming track: use usdai for ico or susdai for airdrop, with defi activities categorized into different risk profile. More liquidity upfront, less free reward later, and less liquidity upfront, more reward later (tho airdrop is only 30% of the supply, so another constraint to consider for optimal strategy) ⁃ How stable usdai actually is seems to depend on the rate of GPU market repricing + secondary market depth. Still feels risky compare to tbill, but good innovation on debt-backed stablecoin imo