quote: The best way to de-risk GPU-backed loans is to make sure debts get paid down faster than GPUs depreciate. USDAI loans amortize over 3 yrs, with monthly payments covering principal plus interest. ~50% of the original loan comes back by year 1. By year 2, LTV falls toward 20-30%. @0xZergs on @wycf_show | Nvidia will sell about $500B of GPUs next year. Buyers will pay closer to $700B once the interest is counted. That $200B of debt is the second business hiding inside AI. @0xZergs breaks down how @usdai_official underwrites it, and where the yield comes from.

quote: The best way to de-risk GPU-backed loans is to make sure debts get paid down faster than GPUs depreciate. USDAI loans amortize over 3 yrs, with monthly payments covering principal plus interest. ~50% of the original loan comes back by year 1. By year 2, LTV falls toward 20-30%. @0xZergs on @wycf_show | Nvidia will sell about $500B of GPUs next year. Buyers will pay closer to $700B once the interest is counted. That $200B of debt is the second business hiding inside AI. @0xZergs breaks down how @usdai_official underwrites it, and where the yield comes from.

Source:https://x.com/USDai_Official/status/2087630289342480442