FAQs

Frequently Asked Questions

Here are some common questions about Interstable, AIxFI, and our upcoming aiUSD stablecoin.

About Interstable & AIxFI

1. Q: What is Interstable? A: Interstable is a platform designed to make it easy and safe for you to earn optimized yield on your stablecoins. Our tagline is "DeFi's Smart Earnings." We use a smart AI system called AIxFI to find and manage the best stablecoin yield opportunities across different DeFi protocols.

2. Q: What is AIxFI? A: AIxFI is Interstable's proprietary AI Yield Engine. It continuously analyzes the DeFi stablecoin market to discover, assess, and identify optimal risk-adjusted yield opportunities. In our initial MVP phase, the Interstable website showcases AIxFI's analytical capabilities and insights. AIxFI will be the direct intelligence powering our upcoming aiUSD stablecoin.

3. Q: How is Interstable's approach different? A: Interstable aims to solve key challenges in DeFi yield generation: * Complexity: We abstract the difficulty of navigating countless protocols and strategies. * Optimization: AIxFI provides AI-powered analysis and (for aiUSD) dynamic management that's hard for individuals to replicate. * Risk Management: We emphasize diversification and thorough vetting (both by the team and AI) of underlying protocols and assets. * Transparency: We are committed to showing how AIxFI works and how aiUSD (once launched) will be backed and managed.

How AIxFI Works & Yield Generation (for aiUSD)

4. Q: How will aiUSD (powered by AIxFI) generate yield? A: When aiUSD launches, users will deposit stablecoins. AIxFI will then guide the allocation of these funds into a diversified basket of carefully vetted, yield-bearing positions. These can include established DeFi protocols (like lending markets) and, to capture potentially higher and sustainable yields, may also include a portion in strategies that involve defined lock-up periods. AIxFI will continuously monitor these positions and trigger rebalancing to optimize for the best risk-adjusted returns. The yield earned from this diversified basket is what will make aiUSD grow in value.

5. Q: What kind of APY will aiUSD aim for? A: The APY for aiUSD will be dynamic and depend on overall market conditions and the performance of the underlying strategies managed by AIxFI. Our goal is for aiUSD to consistently offer a highly competitive net APY. We aim for aiUSD to outperform the average net APY you might find from a basket of leading, established stablecoin yield protocols by a notable margin (for example, potentially targeting up to 2-3% absolute APY points higher, or a significant relative outperformance, depending on market conditions). The inclusion of higher-yield strategies, some of which may have lock-ups, is intended to help achieve this. This outperformance will be achieved through AIxFI's intelligent allocation, diversification, and dynamic rebalancing, after our transparent protocol performance fee. The live, current estimated net APY for aiUSD will be clearly displayed on our dApp dashboard and Transparency Page once launched. Please remember that past performance or aspirational targets are not guarantees of future returns.

6. Q: How does AIxFI analyze opportunities for the upcoming aiUSD? A: For our MVP, AIxFI (as showcased on the website) demonstrates its analytical process. It monitors data from various sources (like DefiLlama, Exponential.fi, and on-chain data) for whitelisted protocols, including assessing the terms and yield benefits of strategies with lock-up periods. Based on predefined rules and evolving AI models concerning APY, risk scores, TVL, liquidity profile, etc., it identifies optimal allocations. For the live aiUSD product, this process will be active, with AIxFI's suggestions guiding the dynamic management of the portfolio (initially with human oversight, evolving towards greater automation).

7. Q: How often will the aiUSD portfolio be rebalanced by AIxFI? A: Rebalancing of the aiUSD underlying portfolio won't be on a fixed schedule. It will occur when AIxFI identifies a significant opportunity to improve the risk-adjusted yield (considering any lock-ups and transaction costs) that justifies the action. AIxFI will continuously monitor market conditions to make these determinations.

Security & Risks

8. Q: Is Interstable safe? What are the risks associated with aiUSD(once launched)? A: Security is our top priority. * Smart Contract Audits: All smart contracts for aiUSD and related Interstable infrastructure will undergo comprehensive security audits by reputable third-party firms before launch and before any user funds are accepted for aiUSD. Audit reports will be publicly available. * Risks: Like all DeFi products, aiUSD will involve risks. These include: * Smart Contract Risk: The risk of bugs or vulnerabilities in Interstable's own contracts or in the third-party DeFi protocols aiUSD integrates with. We mitigate this through audits and careful vetting, but the risk can never be zero. * Stablecoin De-Peg Risk: The risk that one of the underlying stablecoins in aiUSD's basket loses its peg to the US dollar. We mitigate this by diversifying across reputable stablecoins chosen by AIxFI. * Market & Liquidity Risk: Changes in market conditions could affect yields. If a portion of aiUSD's underlying assets is allocated to strategies with lock-up periods, the ability to instantly redeem the entire aiUSD supply might be impacted by these lock-ups. The liquid portion of aiUSD will remain redeemable on demand, but locked portions will be subject to their respective unlock schedules. This will be fully transparent. * We are committed to full transparency about these risks.

9. Q: How will Interstable (via AIxFI) choose which stablecoins and DeFi protocols to use for aiUSD? A: AIxFI employs a strict vetting process, which includes: * Stablecoins: Focusing on highly reputable, liquid, and well-backed stablecoins with a strong history of maintaining their peg. * DeFi Protocols: Whitelisting protocols based on multiple security audits, time in market, TVL, team reputation, risk scores from platforms like Exponential.fi, and sustainable yield mechanisms. AIxFI will also consider strategies with defined lock-up periods if the risk-adjusted yield premium is compelling and transparent.

10. Q: What happens if a protocol used by aiUSD gets hacked? A: This is a risk AIxFI's strategy aims to mitigate through careful selection and diversification. If a whitelisted protocol experiences an issue, the strategy would be to attempt to withdraw funds as quickly as possible (respecting any lock-ups if applicable for that portion). The impact on aiUSD would depend on the proportion of capital allocated to that specific protocol. Diversification is key to limiting exposure to any single point of failure.

Using Interstable & aiUSD (Once Launched)

11. Q: How will I deposit funds to get aiUSD once it launches? A: You will connect your Web3 wallet (like MetaMask) to the Interstable dApp. On the "Deposit" page, you'll select an approved stablecoin you hold, enter the amount, approve the transaction in your wallet, and confirm. You'll then receive aiUSD tokens.

12. Q: How will I withdraw my funds from aiUSD? A: On the Interstable dApp's "Withdraw" page, you'll specify how much aiUSD you want to redeem. * The system will first try to fulfill your request from the portion of aiUSD backed by instantly liquid assets. * If your withdrawal request is large, or if your pro-rata share of aiUSD includes assets currently in strategies with lock-up periods, the platform will clearly show you what portion can be withdrawn immediately and what portion is subject to an underlying lock-up. For the locked portion, you'll be informed of the estimated unlock time or guided through a withdrawal queue process.

13. Q: Will there be fees for using aiUSD? A: * Deposit Fees: No fees from Interstable for depositing. * Withdrawal Fees: No standard withdrawal fees from Interstable. In very rare cases of extremely large withdrawals causing exceptional rebalancing costs, a small dynamic fee might apply. * Performance Fee: Interstable will charge a small performance fee on the yield generated by aiUSD. Our target is an effective annualized rate of approximately 10% of the yield earned by the protocol. This fee will be accounted for in the APY displayed for aiUSD. * Gas Fees: Users will pay standard network gas fees for their transactions. We aim to implement Account Abstraction (Gas Abstraction) if feasible, to allow paying these gas fees in stablecoins.

Transparency

14. Q: How will Interstable ensure transparency for aiUSD? A: Transparency is a core principle. Once aiUSD is live, we will provide a dedicated Transparency Page showing: * Real-time (or near real-time) breakdown of assets backing aiUSD, including a clear distinction between liquid and locked portions. * Links to our on-chain smart contract addresses. * Details on where assets are deployed and any applicable lock-up terms. * Key metrics like TVL, aiUSD supply, historical APY, and the current liquid/locked asset ratio. * Prominent links to all security audit reports. * Clear risk disclosures.