YZi Labs has made a strategic investment in USD.AI, an AI-powered, yield-bearing stablecoin protocol that has recently surpassed $62 million in Total Value Locked (TVL).

This investment highlights a growing trend of integrating artificial intelligence with decentralized finance. USD.AI is a synthetic stablecoin backed by a combination of computing resources, AI hardware, and other crypto assets. This model allows it to generate yield for its holders, derived from the income-producing capabilities of its underlying infrastructure.

The protocol operates on a dual-token system. It features USDai, a stablecoin pegged to the US dollar for everyday transactions, and sUSDai, a yield-bearing token. This structure is designed to create a balanced ecosystem that incentivizes depositors, borrowers, and the providers of the computing infrastructure that backs the stablecoin.

The backing from YZi Labs will help USD.AI expand its crypto infrastructure and further develop its innovative stablecoin model, which aims to bridge the gap between DeFi and the rapidly growing AI industry.