De-Fi Pool
Last updated
Last updated
GPGPU is pioneering a new approach to GPU finance by integrating De-Fi and De-Pin, combining the strengths of both to create a more flexible and efficient system. This model unites GPU providers into a single flexible pool, where clients can rent any device from the GPU pool (with the most efficient device automatically allocated by the node). All revenues generated are considered shared income among the providers.
To ensure stable returns for GPU providers, a dedicated fund is required. This is facilitated through the GPGPU De-Fi protocol, where anyone can invest in a bond-like token called GP Bond. The funds from GP Bond investors are used to provide stable rental payments to GPU providers.
GP Bond holders earn profits from the difference between the rental payments made to GPU providers and the actual fees paid by clients for GPU usage. For example, if a GPU provider expects a 20% annual return and the client fees translate to a 35% annualized return, the GP Bond investor earns the 15% difference.
GPU Providers: Offer their GPUs to the pool and receive a share of the collective revenue.
Clients: Rent GPUs and pay usage fees.
GP Bond Investors: Prepay rental fees to GPU providers and earn profits from the difference between these fees and the actual usage fees paid by clients.
This structure allows GPU providers to start earning rental income immediately upon connecting their devices. While directly renting out their devices without going through the pool could yield higher returns, it comes with irregularity, uncertainty, and instability. For large-scale industrial devices, providers might prefer entering into fixed-term contracts outside the De-Fi pool. However, for individuals owning gaming devices like the RTX 4090, connecting to the GPU pool offers predictable and stable income, which is often more valuable.
This innovative model ensures that GPGPU provides a reliable and efficient financial ecosystem for both GPU providers and investors, enhancing the overall value proposition for all participants involved.
nvestors contribute capital and receive GP Bonds. GP Bonds are tokens backed by the intrinsic value of GPU resources, allowing holders to share in the profits of the De-Fi Pool. Unlike typical governance tokens, GP Bonds have a fixed face value and do not experience price volatility.
The invested capital is securely held in a separate contract and is used to pay rental fees for GPUs connected to the De-Fi Pool. Rental fees are calculated on an hourly basis, with settlements occurring every 24 hours. GPU providers connected to the De-Fi Pool (offering their GPUs) are rewarded based on the annual rental yield, starting from the point when they maintain a minimum uptime of seven days.
The yield is determined by three factors: the actual rental fees paid by clients, the expected annual return for Bond investors, and the annual rental cost of the GPU Pool. The profits generated from renting the GPU Pool to users, after deducting the GPU rental fees, are distributed to the GP Bond holders.
GPU Usage Fee (α): The fee paid by the client for GPU usage.
Bond Investor Profit (β): The remaining profit after deducting the service fee from the GPU usage fee.
GPU Rental Fee (γ): The rental fee paid to GPU providers from the Bond investors' capital.
Margin Gap (δ): The difference between the GPU usage fee and the GPU rental fee.
Service Fee (ε): The platform fee charged by GPGPU.
Margin Gap (δ) = GPU Usage Fee (α) - GPU Pool Rental Fee (γ)
Bond Investor Profit (β) = Margin Gap (δ) - Service Fee (ε)
Therefore, a certain margin gap must exist between the rental income from the GPU Pool and the profits of the Bond investors, referred to as the 'margin gap.' This margin gap is determined by the demand and supply of GPUs.
The adjustable variables in this scenario include the rental fee paid to the De-Fi Pool, the margin gap, and the service fee. By adjusting the annual rental fee offered to the GPU Pool, the supply of GPUs can be increased or decreased accordingly. Additionally, adjusting the margin gap can influence the amount of Bond investment capital. These variables can be tuned to balance the supply of the De-Fi Pool with the Bond investment capital.
Investors can redeem their Bonds to recover their investment capital. GP Bonds have a 365-day maturity period from the date of issuance, and the rental fee for the GPU Pool is deducted daily from the principal investment. Likewise, the profits from the De-Fi Pool are distributed daily. The formula to calculate the redeemable investment capital is as follows:
Redeemable Investment Capital = Principal Investment + GPU Pool Rental Income - GPU Pool Rental Fee
As long as the available yield of the De-Fi Pool does not fall below the rental fee, the risk of losing capital below the initial investment is minimal. An automated protocol ensures that the available yield remains above a certain threshold, ensuring sufficient profit above the De-Fi Pool rental fee. If the yield falls short and the margin gap cannot be maintained, lower-quality GPUs are automatically removed from the De-Fi Pool, thereby reducing the overall rental fee and restoring a higher yield.
GP Bonds can be traded between GPGPU service users on a secondary market. The face value of the token remains constant, but a premium can be added based on the remaining time until maturity. The premium is determined by the market participants.
GP Bond Price = Face Value + Premium
Trading is conducted on the GPGPU website, and only users who have completed KYC (Know Your Customer) verification are eligible. This verification process is essential for preventing fraud and money laundering. GP Bonds cannot be traded on unauthorized DEXs or centralized exchanges.
Increase in GPU Availability:
GPU Availability Increase: GPU usage demand rises, or GPU providers exit, leading to increased availability in the De-Fi Pool.
Bond Yield Increase: As usage demand rises, Bond yield increases, and if GPU providers exit, the De-Fi Pool size decreases, lowering rental fees and thus increasing Bond yield.
Inflow of Bond Investments: Higher Bond yields attract more investment.
Stabilization: The inflow of new Bond investments stabilizes both Bond yields and GPU availability.
Decrease in GPU Availability:
GPU Availability Decrease: GPU usage demand declines, or more GPU providers enter, reducing availability in the De-Fi Pool.
Bond Yield Decrease: Reduced usage demand lowers yields, and an influx of GPU providers increases the De-Fi Pool size, raising rental fees, and reducing Bond yield.
Bond Investment Withdrawal: Bond holders redeem their Bonds, leading to capital outflow.
De-Fi Pool Reduction: GPGPU reduces the size of the De-Fi Pool, or GPU providers exit due to Bond investment outflows.
GPU Rental Fee Decrease: A smaller De-Fi Pool reduces overall rental fees.
Stabilization: Bond yields increase again, leading to stabilization.
This comprehensive system ensures that GPGPU provides a balanced and sustainable financial ecosystem, benefiting all participants and maintaining a stable and profitable environment for GPU providers, Bond investors, and clients alike.
