YIELD \- Yield Infrastructure & Enhanced Liquidity Derivatives

The YIELD module of the GAIB Protocol consists of two key assets:

1. AID: A non-yield bearing synthetic dollar fully backed by U.S. Treasuries and minted 1:1 by depositing USDC, USDT and other accepted stablecoin assets
2. sAID: A receipt token representing a share in a tokenized AI infra financing fund. $sAID is not pegged to 1.00, but rather represents the net asset value (NAV) of a claim on the fund assets.

The AI Synthetic Dollar (AID)

$AID is GAIB’s non-yield bearing synthetic dollar. AID is minted by depositing USDC, USDT and other accepted stablecoin assets and is fully backed at all times by U.S. Treasuries (or cash).

As a non-yield bearing synthetic asset, $AID seeks to maintain a peg of US $1.00 and is easily interoperable across the defi ecosystem. $AID can be acquired on leading DEXes

$AID is the only form of acceptable collateral which can be staked to receive shares in the sAID tokenized financing fund.

The Staked AID (sAID) Fund

sAID Fund units can be minted, at the prevailing deposit NAV, by staking $AID.

The sAID Fund’s underlying collateral is deployed into:

1. a book of high-quality real-world GPU and AI infrastructure financing deals; and
2. a liquidity buffer / equity cushion comprising U.S. Treasuries amounting to ~30% of fund assets.

When a depositor contributes collateral to the sAID Fund they will be issued $sAID, a tradeable LP token. The AID Fund utilizes the ERC-4626 “Tokenized Vault” Standard, which is used to manage how the $sAID token accrues value from the underlying financing deals. The $sAID token itself utilizes the ERC20 token standard and is tradeable on existing DEX infrastructure.

Minting and redemption of AID**

AID is minted by depositing USDC, USDT and other accepted stablecoin assets via the GAIB AID minting contract (whitelisted minters only). AID is fully backed at all times by U.S. Treasuries (or cash).

AID is redeemed for underlying collateral (USDC, USDT and other accepted stablecoin assets) via the GAIB AID redemption contract (whitelisted redemption partners only).

Note for non-whitelisted parties, AID is easily exchanged to / from USDC, USDT and other stablecoin assets on leading DEXes.

Staking and unstaking of sAID**

sAID Fund units can be minted, at the prevailing deposit NAV, by staking $AID via the GAIB AID staking portal. AID staking is available to all AID holders.

$AID is the only form of acceptable collateral which can be staked to receive shares in the sAID tokenized financing fund.

When a depositor contributes $AID collateral to the sAID Fund they will be issued $sAID, a tradeable LP token. The AID Fund utilizes the ERC-4626 “Tokenized Vault” Standard, which is used to manage how the $sAID token accrues value from the underlying GPU and AI infrastructure financing deals. The $sAID token itself utilizes the ERC20 token standard and is tradeable on existing DEX infrastructure.

sAID units will be issued to AID depositors based on the prevailing sAID Despoit NAV (which determines the AID / sAID exchange rate)..

sAID can be unstaked via the GAIB AID staking portal at any time at the sAID Withdrawal NAV sAID unstaking requests will be subject to the withdrawal mechanism.

sAID NAV

Dual Exchange Rate System

In order to protect against large liquidity events in situations where it is public knowledge that the sAID Fund will incur a loss in the future, a dual exchange rate system is used.

The price at which $sAID can be minted from AID collateral deposits will be determined by the Deposit Exchange Rate**.** The Deposit Exchange Rate does not consider unrealised losses.

There will also be a separate exchange rate maintained for the purpose of processing withdrawal requests which does consider unrealised losses, this is known as the Withdrawal Exchange Rate.

Calculation of sAID NAV

This section contains more detail on the mechanics of calculating sAID NAV:

Calculation of Total Supply (totalSupply)

Total Supply is equal to the sum of sAID collateral deposits received.

Total Supply is only impacted by minting (deposits) and redemptions. No interest, fees or impairments touch totalSupply; instead they move the numerator of NAV (totalAssets for Deposit NAV, totalAssets and unrealizedLosses for Withdrawal NAV).

Calculation of Total Assets (totalAssets)

Total Assets is continuously updated based on activity in the underlying GPU and AI infrastructure financing book according to the following formula:

Calculation of Deposit NAV (NAVdeposit)

Deposit NAV determines how much $sAID you receive when you mint by sending fresh collateral to the sAID Fund. It ignores any unrealised loan losses.

Calculation of Withdrawal NAV (NAVwithdraw)

Withdrawal NAV determines how much collateral you receive when you redeem via the queue. It does subtract unrealised loan losses.

NAV calculation - Worked example

T	Event	Pool Cash	Loan  Principal Out	Accrued  Interest	Unrealised  Loss	totalAssets	sAID tokens	Deposit NAV	Withdrawal NAV
T0	Investor A deposits 1000 USDC	1000	0	0	0	1000	1000	1.00	1.00
T1	Investor B deposits 500 USDC	1500	0	0	0	1500	1500	1.00	1.00
T2	Pool funds a 1200 USDC loan	300	1200	0	0	1500	1500	1.00	1.00
T3	Six weeks pass → 30 USDC interest accrues	300	1200	30	0	1530	1500	1.02	1.02
T4	Borrower pays the 30 USDC coupon	330	1200	0	0	1530	1500	1.02	1.02
T5	Investor A withdraws 300 USDC (≈294 $AID tokens at Withdrawal NAV)	30	1200	0	0	1230	1206	1.02	1.02
T6	Loan is impaired → GAIB books 200 USDC paper loss	30	1200	0	200	1230	1206	1.02	0.85
T7	Default settles: 80 USDC is written off (120 USDC recouped, loan remains outstanding)	30	1120	0	0	1150	1206	0.95	0.95

Note on operational currencies: Loans are issued in non-AID collateral assets. Accordingly, interest payments are also made in the same loan currency (not in AID). These interest payments accrue in the sAID Fund, increasing its Net Asset Value (NAV).

When a depositor withdraws from the sAID Fund into $AID, the withdrawal occurs at the prevailing Withdrawal NAV (the AID / sAID exchange rate). At that point, the non-$AID assets held in the Fund — including interest received — are converted into AID supply.

GAIB Protocol Reserve

The Protocol Reserve is a dedicated pool of capital established to support the long-term stability and resilience of the protocol. In its initial stages, the Reserve may be funded through third-party deposits; however, over time, it is intended to transition into a protocol-owned resource.

The Reserve exists to provide an additional layer of protection in the event of unforeseen credit events, temporary liquidity mismatches, or other disruptions that may threaten the health of the protocol. Its use is discretionary and intended only as a safeguard, ensuring that the system can continue to operate smoothly and with integrity, even under stressed conditions. By maintaining a Protocol Reserve, GAIB reinforces its commitment to risk management and investor confidence, while creating a sustainable foundation for long-term growth.

Reinsurance via Restaking - Future initiative

As a future initiative, the protocol may explore the use of “reinsurance” mechanisms by integrating with restaking networks such as Symbiotic or EigenLayer. Through these integrations, the protocol could obtain additional protection against defined credit events by leveraging external restaked capital to backstop losses. This approach would supplement the Protocol Reserve, diversifying the sources of protection available to participants and further strengthening the protocol’s resilience. By aligning with established restaking markets, the protocol can access scalable, decentralized risk coverage while maintaining capital efficiency and transparency.

Market price of $sAID

It is important to remember that the sAID NAV will not necessarily be the same as the price which $sAID can be purchased or sold on the open market. When someone purchases $sAID on a DEX they will pay the market price set by the AMM’s order flow, not the Deposit NAV (the on‑chain mint price GAIB uses when someone deposits accepted collateral directly into the Staked AID Financing Fund). The AMM price can sit above, at, or below Deposit NAV depending on supply and demand, gas costs and how quickly arbitrageurs act.

In fact, one would imagine that the market price of $sAID would broadly behave per the below:

Scenario	Deposit  NAV	Withdrawal  NAV	Expected DEX price	Why ?
Normal conditions (no impairments)	$1.03	$1.03	$1.02 - $1.04	Small premium/discount reflects gas, slippage and time‑value of waiting for queue yields.
Impairment just announced	$1.03	$0.85	$0.86 - $1.02	Buyers won’t pay more than the cheaper withdrawal rate (after queue time).
Bullish frenzy (yields rising, queue long)	$1.05	$1.05	> $1.06	Some traders pay up to skip the commit delay; arbs mint at $1.05 and sell until spread shrinks.