Glossary

Glossary (In Alphabetical Orders)

AID - The first product built on GAIB's economic layer, a synthetic dollar fully backed by the U.S. treasury.

AID Alpha - The Alpha version of AID, launched as a pre-deposit campaign to give the community early access to AI yield, rewards, and gamifications, aimed at bootstrapping liquidity for the GAIB protocol.

AI Cloud Infrastructure - The hardware and software systems designed to support AI workloads, including GPU clusters, data centers, neoclouds, hyperscalers, and others.

AI Compute - The processing power required to train and run AI models, typically provided by enterprise-grade GPUs.

AI-driven Yields - Returns generated from investments in AI infrastructure that are backed by AI workload usage and demand.

AI Infra (AI Infrastructure) - The underlying technological framework supporting AI workloads, including GPUs, robotics, and data centers.

AI Supercluster - A large-scale computing cluster facility specifically designed for AI workloads.

AMM (Automated Market Maker) - A mechanism used by decentralized exchanges for determining prices and facilitating trades without the need for an order book, used for sAID token trading.

ASP - A dedicated protocol insurance and reinsurance fund designed to mitigate default and operational risks in the AI infrastructure capital markets.

Atreides Council - The initial governance body for the GAIB network during Phase I, consisting of core contributors and partners.

Audit and Compliance - The process of ensuring that GAIB's operations and financing activities adhere to legal and regulatory standards, including collaborating with third-party auditors and compliance specialists.

Collateral - The assets (such as USDC, USDT) deposited into the GAIB protocol or the sAID Fund as security for minting sAID or borrowing.

Collateralized Debt - Loans or financing deals that are secured by collateral, such as GPUs or robotics hardware, that lenders can claim if the borrower defaults.

Compute Power - The power generated by GPUs, necessary for running AI foundation models and training AI systems.

Curve - A decentralized exchange (DEX) built for stablecoins and similarly priced assets. It facilitates liquidity pools and enables the trading of assets like AIDaUSDT and AIDaUSDC within the GAIB ecosystem.

Data Center Financing - The process of raising capital to build and expand data centers, which are critical for AI infrastructure.

Debt Model - A financing model that involves fixed interest repayments in exchange for capital.

Dual Exchange Rate System - A system where the deposit exchange rate governs the minting of sAID from collateral, and the withdrawal exchange rate governs redemptions, incorporating unrealized losses.

Equity Model - A financing model that shares future GPU-generated revenue in exchange for capital in AI infrastructure projects.

EigenLayer's AVS and Symbiotic - Shared-security restaking mechanisms used to secure cross-chain transactions within GAIB's Validator Network.

Embodied AI - AI systems integrated into robots that enable them to autonomously perform tasks in the physical world.

ERC-20 - The Ethereum token standard that is used for the sAID token, making it tradable on existing decentralized exchanges (DEXs).

ERC-4626 - The Tokenized Vault Standard, used by GAIB for managing how the sAID token accrues value from the underlying AI infrastructure financing deals.

Fremen Rule - The governance model that will fully decentralize the GAIB protocol in Phase II, where decisions are made by tokenholders.

GAIB Staking Portal - The platform where users can stake AID to receive sAID and earn rewards.

GAIB Treasury - A fund that holds the revenue generated from the protocol's fees, used to fund growth initiatives and ongoing operations of the GAIB network.

GAIB Vault - The pool that holds yield rewards earned from Segregated Portfolios (SPs) and serves as a central repository for managing capital within the GAIB ecosystem.

GPU (Graphics Processing Unit) - A processor originally designed for graphics rendering, now used for high-performance computing (HPC) and AI workloads.

Hybrid Model - A combination of both debt and equity financing models, combining fixed interest repayments and revenue sharing for capital in AI infrastructure.

Internal Rate of Return (IRR) - A metric used to evaluate the profitability of investments. It represents the annualized rate of return at which the net present value (NPV) of all cash flows (positive and negative) from a project or investment equals zero.

Investment Committee (IC) - The governing body responsible for approving investment proposals after the completion of the underwriting and due diligence process.

KYC (Know Your Customer) - A process of verifying the identity of users before they can participate in financial transactions on the GAIB protocol, required for minting AID directly.

KYB (Know Your Business) - A process of verifying the identity of institutions (as opposed to individuals), required for institutional investors to mint AID directly.

Liquidity Buffer - A reserve of U.S. Treasuries (~30%) that provides liquidity to the sAID Fund and helps mitigate risks.

Liquidity Layer - The component of the GAIB protocol that ensures efficient capital movement and market access through redemption, lending, and trading mechanisms.

Loan-to-Value (LTV) - A financial term used to express the ratio of a loan to the value of an asset purchased. A higher LTV means more leverage, and typically more risk.

Mezzanine Financing - A hybrid of debt and equity financing that is used to fund projects, such as the expansion of AI infrastructure, where risk and returns are shared.

Morpho - A lending and borrowing protocol integrated with GAIB to allow users to borrow USDC using PT-AIDaUSDT collateral and to recycle capital into additional yield positions.

Multiple on Invested Capital (MOIC) - A financial metric that shows how many times an investor's initial capital is returned. A MOIC of 1.25x means the investment returned 1.25 times the invested capital.

NEXUS - The unified settlement and exchange platform for AID and sAID liquidity, offering users the ability to trade or redeem tokens on the market or through the protocol’s withdrawal system.

Net Asset Value (NAV) - The value used to determine the exchange rate between AID and sAID. It is calculated based on the total assets in the portfolio divided by the total supply of sAID tokens.

Node Enforcement & Trust - The network layer responsible for ensuring the transparency, security, and trustworthiness of GAIB's tokenized assets, particularly physical AI infrastructure such as GPUs.

Omnichain Architecture - GAIB’s architecture that enables seamless interoperability across multiple blockchains, supporting Ethereum, Arbitrum, and Base, among others.

ONRAMP (On-Chain Real World Asset Minting Protocol) - A protocol that tokenizes physical AI infrastructure assets, such as GPUs and robotics, through secured legal frameworks and vault-based smart contracts, enabling investors to participate in AI infrastructure financing.

Pendle - A yield-trading protocol that allows users to trade fixed and variable yields based on their risk tolerance. It integrates with GAIB to trade AID and enable strategies using Principal Tokens (PT) and Yield Tokens (YT).

Principal Token (PT) - A token on the Pendle platform representing the right to purchase underlying assets at a discount, similar to a zero-coupon bond. It provides fixed returns in the underlying asset at maturity.

Referral Program - A system where users who refer others to the GAIB platform can earn a percentage of their referred users' Spice rewards, incentivizing new user acquisition.

Robotics Market - A market that involves robots powered by AI systems to perform tasks autonomously in industries such as manufacturing, logistics, healthcare, and hospitality.

sAID (staked AID) - A receipt token minted by staking AID, representing a share in a tokenized portfolio of AI infrastructure financing deals and a reserve of U.S. Treasuries.

sAID AMM Liquidity - The option to trade sAID tokens on decentralized exchanges (AMMs) for immediate liquidity, offering an alternative to the standard withdrawal process.

sAID Withdrawal NAV - The value at which sAID tokens can be redeemed during the withdrawal process, which considers unrealized losses when users exit the tokenized AI financing fund.

Segregated Portfolio (SP) - A distinct portfolio within a Special Purpose Vehicle (SPV), where specific assets and liabilities are segregated and managed separately.

SPV (Special Purpose Vehicle) - A legal entity created for a specific purpose, typically to isolate financial risks associated with a particular investment or asset pool, often used in GPU-backed financing deals.

Symbiotic - A shared security protocol that allows multiple networks to access security from stakers, enhancing GAIB's protocol by offering decentralized risk coverage through flexible, permissionless restaking.

Tokenization Agreement - An agreement governing the process of converting physical assets into digital tokens through GAIB’s Tokenization Engine, enabling fractional ownership and investment in AI infrastructure.

Tokenization Fee - A one-time upfront fee, typically paid by borrowers, that compensates the GAIB Treasury for sourcing and structuring AI infrastructure financing deals.

TVL (Total Value Locked) - The total capital locked into the GAIB protocol, used as a metric to measure the protocol's growth and adoption.

Yield Token (YT) - A token on the Pendle platform representing the yield component of a tokenized asset, offering holders access to variable rewards (e.g., Spice points) without any claim to principal value.