USDai, issued by the USD.AI Protocol smart contracts under the governance of CHIP tokenholders, is a fully-backed non-yielding synthetic dollar stablecoin that serves as the protocol on and off ramp and is redeemable 1:1 for its underlying stablecoin reserve [S1][S2].

USDai is pegged to the U.S. dollar (USD) at a 1:1 ratio and is fully backed by PayPal USD (PYUSD), the stablecoin issued by Paxos Trust Company and itself backed by U.S. Treasuries and cash equivalents with monthly third-party attestations [S1][S2]. The marketing page also states users may mint 1:1 from USD Coin (USDC) or Tether (USDT) [S3]. USDai does not accrue yield and carries no exposure to GPU collateral or protocol loans [S1][S2].

USDai is not issued by a single corporate entity; the protocol is governed by the USD.AI Foundation, a Cayman Islands foundation company, with GPU Finance Ltd., a Cayman subsidiary, as Administrative Agent and Permian Labs, a Delaware corporation, as service provider [S4][S2]. The Terms of Service classify USDai as an unregistered utility token under the U.S. Securities Act of 1933, conferring no equity, debt, or dividend rights [S4]. Users must be at least 18 and not located in sanctioned jurisdictions or on prohibited-party lists; primary minting is whitelisted to KYC-verified institutions depositing PYUSD, while holding and transfer remain permissionless [S4][S2]. USDai is redeemable 1:1 at any time without lockups [S1][S3].

USDai is an ERC-20 token deployed on Arbitrum, which serves as the hub, plus Ethereum, Base, and Plasma as LayerZero Omnichain Fungible Token deployments, with an official cross-chain bridge in the USD.AI app [S5][S2]. KYC-verified institutions mint by depositing PYUSD via deposit() and burn to withdraw PYUSD, with backing verified through onchain proof of reserves [S6][S3][S2].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://usd.ai/" },
    { id: "S2", url: "https://docs.usd.ai/llms-full.txt" },
    { id: "S3", url: "https://usd.ai/usdai" },
    { id: "S4", url: "https://docs.usd.ai/terms-of-service/usd.ai-terms-of-service" },
    { id: "S5", url: "https://docs.usd.ai/technical-overview/contract-addresses" },
    { id: "S6", url: "https://docs.usd.ai/technical-overview/technical-protocol-overview" },
  ]}
/>


# Asset off peg methodology

## 1. Overview

The asset off peg metric is defined as the percentage deviation of a tokenized asset's daily closing market price from its designated reference (pegged) asset price. This metric is utilized to assess the stability and peg-keeping performance of stablecoins, wrapped assets, and other pegged tokens. The deviation is calculated relative to the reference price, representing either a premium or a discount in the market. Daily tracking of this metric is performed to enable the monitoring of peg stability and the identification of potential de-pegging events across various asset classes.

## 2. Data sources

- **EVM chain events**: `AnswerUpdated` events from Chainlink aggregator contracts, covering EVM-compatible chains (Ethereum, Polygon, and others)
- **Asset metadata**: Reference asset configurations and token mappings
- **External data**: End-of-day price feeds for tokenized assets

## 3. Step-by-step calculation

### Component A: Retrieve asset prices and reference mappings

- **Purpose**: Identify the daily closing price of each asset and map it to its designated reference currency
- **Logic**: Daily closing prices for each asset are retrieved from end-of-day price feeds. Each asset is mapped to its designated reference currency (such as the U.S. Dollar, Euro, or British Pound) using asset metadata. For assets pegged to the U.S. Dollar, a fixed reference rate of 1.0 is assigned. For assets pegged to other fiat currencies, the corresponding Chainlink FX feed is identified.
- **Key fields**: `asset_price` (daily closing price of the asset), `reference_asset` (the target peg currency), `fx_feed_name` (the identifier for the Chainlink FX feed)

### Component B: Resolve daily reference prices

- **Purpose**: Determine the daily USD value of the reference peg currency
- **Logic**: Daily FX rates are extracted from Chainlink oracle price feeds on EVM-compatible chains. To account for days without oracle updates, the last recorded rate for each FX feed is carried forward to construct a continuous daily time series. The daily reference price is then established by matching the asset's mapped FX feed or fixed rate with the corresponding daily rate.
- **Key fields**: `price` (the FX rate from the oracle feed), `timestamp` (the date of the rate), `reference_price` (the resolved daily reference price in USD)

### Component C: Calculate peg deviation

- **Purpose**: Compute the final percentage deviation of the asset price from its reference price
- **Logic**: The daily asset price and the resolved daily reference price are aligned by timestamp and asset identifier. The percentage deviation is calculated by subtracting the reference price from the asset price, and dividing the result by the reference price. Days where a reference price cannot be resolved are excluded from the final dataset.
- **Key fields**: `asset_off_peg` (the percentage deviation from the peg), `timestamp` (the daily grain timestamp)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

(market_price - reference_price) / reference_price

Percentage deviation of the asset price from its reference peg.

Asset off peg

Stablecoins

The protocol utilizes the CALIBER system (Collateralized Asset Ledger: Insurance, Bailout, Evaluation, and Redemption) to tokenize physical hardware collateral into verifiable on-chain assets with enforceable property rights. It operates through bankruptcy-remote SPVs, equity down payments, and FiLo vaults that create multiple lines of defense for token holders, while managing illiquid collateral through market-driven mechanisms like QEV (Queue Extractable Value) rather than first-come-first-served redemptions.

The project operates an overcollateralized stablecoin (USDai) that generates yield by providing liquidity to emerging AI companies with real-world hardware collateral. Users can stake USDai to earn sUSDai, which provides real yield backed by AI infrastructure investments and can be used across DeFi protocols for additional returns.

USDai is a decentralized stablecoin protocol developed by Permian Labs that bridges traditional finance with AI infrastructure lending.

twitter

website

github

telegram

Real-world asset (RWA) issuers

USDai

USDai Stablecoin (USDai) is a U.S. dollar stablecoin issued by USDai through USD.AI Foundation.

Each token is a collateral-backed contractual exposure rather than a direct claim on the issuer.

Institutions can mint and redeem directly with USDai in PYUSD after completing KYC.

USD.AI Foundation is incorporated in the Cayman Islands.

Holder terms are governed by the law of the Cayman Islands, with disputes heard in the United States.

USDai has been issued on public blockchains since May 2025 and is native to Arbitrum One, Ethereum, Plasma, and Base.

USDai StablecoinUSDai