STAB3L LITEPAPER

The World's First Compute-Backed Stablecoin Protocol

Version 2.0 - March 2025

{% hint style="info" %} This litepaper provides an investor-focused overview of the STAB3L compute-backed stablecoin protocol. For the complete technical whitepaper, please see the whitepaper section. {% endhint %}

Table of Contents

1. Executive Summary
2. Problem Statement
3. The STAB3L Solution
4. Technical Architecture
5. Token Economics
6. Go-to-Market Strategy
7. Competitive Landscape
8. Team and Advisors
9. Roadmap
10. Investment Opportunity
11. Conclusion

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Executive Summary

STAB3L introduces the world's first compute-backed stablecoin protocol designed to stabilize the volatile pricing of computational resources. By pegging our stablecoin (sSTB) to standardized Compute Units (CUs) and implementing a robust governance token (rSTB), STAB3L creates a stable, efficient ecosystem for compute resources that addresses critical challenges in the $500B global compute market.

Our protocol solves critical challenges in the current compute resource market, including price volatility, lack of standardization, verification difficulties, and trust issues. STAB3L's approach combines advanced zero-knowledge proofs (ZKPs), trusted execution environments (TEEs), and a dual-token economic model to create a paradigm shift in how compute resources are priced, allocated, and utilized.

With a total addressable market projected to reach $1T by 2030 and an experienced team from leading technology and blockchain companies, STAB3L is positioned to become the foundation for the future of stable, decentralized compute infrastructure.

Problem Statement

{% accordion title="The Compute Resource Market Challenges" %} The compute resource market faces several critical challenges that STAB3L addresses:

1. Price Volatility: Compute costs fluctuate by ±30% annually, creating unpredictable expenses for AI developers, blockchain projects, and scientific research.

2. Lack of Standardization: No universal standard exists for measuring and comparing compute resources, making it difficult for users to make informed decisions.

3. Verification Challenges: Users struggle to verify the actual capabilities of compute resources, leading to mistrust and inefficient resource allocation.

4. Trust Issues: The market relies heavily on centralized intermediaries for verification and settlement, introducing single points of failure and trust concerns. {% endaccordion %}

These challenges create significant friction in the market, limiting growth and innovation in the broader blockchain and AI ecosystems.

The STAB3L Solution

STAB3L addresses these challenges through a comprehensive compute-backed stablecoin protocol with three key components:

1. Compute Unit Standardization & Verification

STAB3L introduces a standardized Compute Unit (CU) representing a quantifiable measure of computational power. The standardization process involves benchmarking raw compute resources, applying our proprietary standardization algorithm, and assigning CU values.

The mathematical foundation of our CU standardization is expressed as:

$$ CU = \alpha \cdot \text{FLOPS} + \beta \cdot \text{MEM} + \gamma \cdot \text{STORAGE} + \delta \cdot \text{NETWORK} $$

Where:

• $\alpha, \beta, \gamma, \delta$ are weighting coefficients
• FLOPS = Floating Point Operations Per Second (1 CU = 10^15 FLOPs)
• MEM = Memory bandwidth and capacity
• STORAGE = Storage capacity and I/O performance
• NETWORK = Network throughput and latency

{% hint style="info" %} The value of 1 CU is $0.06 at launch. This definition will be reviewed and potentially adjusted quarterly by the DAO through governance voting to ensure the CU standard remains relevant as compute technology evolves. {% endhint %}

Verification is ensured through either Zero-Knowledge Proofs (ZKPs) or Trusted Execution Environments (TEEs), providing cryptographic guarantees of compute resource capabilities without revealing sensitive hardware details.

2. Dual-Token System

STAB3L implements a dual-token system that separates utility and governance functions:

3. Compute-Backed Stablecoin Mechanism

The core of STAB3L is the compute-backed stablecoin mechanism:

1. Compute Provider Staking: Providers stake their compute resources for a period of their choosing (minimum 7 days), which are verified and standardized into CUs.
2. Temporary CU Token Creation: Verified compute resources are represented as temporary CU tokens.
3. Immediate Exchange and Burning: CU tokens are immediately exchanged for sSTB and burned in the process.
4. Automatic sSTB Staking: The newly minted sSTB tokens are automatically staked for the period chosen by the provider.
5. rSTB Rewards: Providers earn rSTB rewards throughout the staking period, with longer staking periods earning higher rewards.
6. sSTB Redemption: Users can redeem sSTB for actual compute resources at the stable price of $0.06 per CU.

{% hint style="warning" %} Important: CU tokens are NOT tradable assets. They are temporary tokens that are burned immediately when exchanged for sSTB. This burning mechanism is crucial for maintaining the peg and ensuring that each sSTB is backed by real compute resources. {% endhint %}

Provider Staking

Compute providers stake their resources with the following parameters:

• Minimum Staking Period: 7 days
• Collateralization Requirement: Minimum 120% of CU value
• Reward Structure: Longer staking periods earn progressively higher rSTB rewards
• Staking Process: Compute resources are verified, CU tokens are issued and immediately burned, sSTB is minted and automatically staked

Technical Architecture

STAB3L employs a modular, layered architecture designed for security, scalability, and interoperability:

{% accordion title="Architecture Layer Details" %}

Data Layer

• On-chain storage (Arbitrum, Solana) for CU data, collateral, and token balances
• IPFS for large datasets like benchmarks

Business Logic Layer

• Smart contracts (Solidity) for minting, redemption, marketplace, and cross-chain logic
• Off-chain logic (Python/Rust) for ZKPs and pricing

API Layer

• REST/gRPC APIs for provider compute delivery
• Hosted on Kubernetes clusters (AWS EKS) with load balancers

Presentation Layer

• React frontend with Web3 integration (Wagmi, MetaMask) {% endaccordion %}

The system's performance is optimized for high throughput and low latency, ensuring a seamless user experience for both compute providers and users.

Token Economics

STAB3L's dual-token system creates a balanced economic model with clear value accrual mechanisms:

Token Distribution

{% tabs %} {% tab title="sSTB Distribution" %}

{% tab title="rSTB Distribution" %}

Value Accrual Mechanisms

Both tokens include deflationary mechanisms and value accrual:

• sSTB: Value is maintained through the 1:1 peg to CUs, with each token always worth $0.06 (1 CU). 10% of all fees collected in sSTB are burned, creating deflationary pressure.

• rSTB: Value appreciates through:

  • 20% of protocol fees allocated to buy back and burn rSTB
  • Governance rights over a growing protocol
  • Staking rewards and fee discounts
  • Reduced supply through burning mechanisms (5% of all rewards distributed are burned)

Staking Programs

Multiple staking programs drive token utility with the following expected yields:

Go-to-Market Strategy

STAB3L's GTM strategy focuses on growth across key segments with a multi-phase approach:

Target Markets

{% accordion title="Target Market Segments" %}

1. AI & ML Developers: Partner with platforms like Hugging Face and Stable Diffusion to onboard AI developers needing reliable compute
2. Blockchain Infrastructure: Integrate with existing blockchain infrastructure providers to expand the provider network
3. Scientific Computing: Target academic and research institutions for high-performance computing needs
4. Financial Institutions: Provide compute solutions for trading systems and data analysis
5. Gaming & Metaverse: Partner with blockchain games and metaverse projects {% endaccordion %}

User Acquisition Strategy

Our acquisition funnel is designed to onboard both compute providers and users:

{% tabs %} {% tab title="Compute Providers" %}

• Direct Partnerships: Onboard 20+ compute providers through direct partnerships

• Incentive Programs: Offer enhanced rSTB rewards for early providers (15% APR)

• Integration Support: Provide technical support for integration with existing infrastructure {% endtab %}

{% tab title="Users" %}

• Early Adopter Bonus: 10% discount on compute costs for first 50,000 users

• Referral Program: Users earn 5 rSTB per referred user who stakes >10,000 sSTB

• Educational Initiatives: "Learn-to-Earn" program rewarding users with rSTB {% endtab %} {% endtabs %}

Growth Projections

Competitive Landscape

STAB3L operates in a market with several adjacent competitors, but our approach provides key differentiators:

{% accordion title="Competitor Analysis" %}

Our key competitive advantages include:

• World's first compute-backed stablecoin protocol
• Cryptographic verification of compute resources
• Cross-chain capabilities spanning multiple ecosystems
• Dual-token model separating utility and governance

Team and Advisors

STAB3L is built by experts in blockchain, distributed systems, and cloud computing:

{% tabs %} {% tab title="Leadership Team" %}

{% endtab %}

{% tab title="Key Advisors" %}

{% endtab %}

{% tab title="Strategic Partners" %} STAB3L plans to establish strategic partnerships with leading organizations in blockchain, cloud computing, and technology.

• Blockchain Networks: Arbitrum, Polygon, Chainlink, The Graph

• Cloud Infrastructure: AWS, Microsoft Azure, Google Cloud Platform {% endtab %} {% endtabs %}

Roadmap

STAB3L's development roadmap is divided into six phases:

{% accordion title="Phase 1: Foundation (Completed - Q4 2024-Q1 2025)" %}

• ✅ Whitepaper/Litepaper publication

• ✅ Research on compute resource standardization

• ✅ Development of standardization algorithm

• ✅ Proof of concept for ZKP verification

• ✅ Initial smart contract architecture design {% endaccordion %}

{% accordion title="Phase 2: Core Protocol (Completed - Q1-Q2 2025)" %}

• ✅ Development of core smart contracts

• ✅ Implementation of sSTB token standard (ERC-20)

• ✅ Implementation of rSTB token standard (ERC-20)

• ✅ Development of verification system (ZKP and TEE)

• ✅ Creation of staking and redemption mechanisms

• 🔄 Seed funding round

• 🔄 Testnet launch on Arbitrum {% endaccordion %}

{% accordion title="Phase 3: Ecosystem Expansion (In Progress - Q2-Q3 2025)" %}

• 🔄 Mainnet launch on Arbitrum

• 🔄 Launch of provider onboarding program

• 🔄 Implementation of governance system

• 🔄 Development of liquidity incentives

• 🔄 Integration with major DeFi protocols

• 🔄 Enhanced analytics and reporting tools

• 🔄 Developer SDK and API

• 🔄 Cross-chain bridge development {% endaccordion %}

{% accordion title="Future Phases (Planned)" %}

Phase 4: Cross-Chain Integration (Q2-Q4 2024)

• 📅 Integration with Ethereum mainnet
• 📅 Integration with Polygon
• 📅 Integration with Optimism
• 📅 Integration with Solana

Phase 5: Enterprise Solutions (Q1-Q3 2025)

• 📅 Enterprise-grade security features
• 📅 Private compute networks
• 📅 Compliance and regulatory solutions
• 📅 Enterprise dashboard and management tools

Phase 6: Global Scaling (Q4 2025 onwards)

• 📅 Global provider network expansion
• 📅 Integration with traditional cloud providers
• 📅 Advanced AI and ML resource allocation
• 📅 Decentralized compute orchestration {% endaccordion %}

Investment Opportunity

STAB3L represents a compelling investment opportunity at the intersection of blockchain, cloud computing, and AI, pioneering the decentralized compute economy with our compute-backed stablecoin.

Market Opportunity

STAB3L operates at the intersection of two rapidly growing markets:

1. Compute Resources: The decentralized compute sector, represented by platforms like Golem, Akash, and Render Network, is expected to reach $100 billion by 2028. Additionally, the stablecoin market is currently valued at $211.2 billion and is projected to grow to $400 billion, providing a strong foundation for STAB3L's dual-token model.

The cloud compute market is currently valued at $483 billion (2022) and is projected to reach $1.6 trillion by 2030, growing at a CAGR of 17.9%.

STAB3L targets $1 billion TVL by 2025 with 500 providers and 10 million CUs staked, leveraging growth in both the stablecoin and DeFi sectors (currently at $200 billion TVL).

{% tabs %} {% tab title="Total Addressable Market" %}

• Cloud Computing Market: $483 billion (2022), growing to $1.6 trillion by 2030

• Decentralized Compute Market: Expected to reach $100 billion by 2028

• Stablecoin Market: $211.2 billion, projected to grow to $400 billion

• DeFi Market: $200 billion TVL, providing infrastructure for STAB3L's financial products {% endtab %}

{% tab title="Investment Highlights" %}

• First-Mover Advantage: World's first compute-backed stablecoin protocol

• Strong Token Economics: Dual-token model with multiple value accrual mechanisms

• Network Effects: Each new provider and user increases protocol value

• Cross-Chain Strategy: Positioned to capture value across multiple blockchain ecosystems via Wormhole

• Experienced Team: Leadership with expertise in blockchain, business architecture, and strategic partnerships {% endtab %}

{% tab title="Token Value Drivers" %}

• Protocol Revenue: Transaction fees, verification fees, redemption fees

• Deflationary Mechanisms: Token burning, staking, reduced circulating supply

• Utility Expansion: Growing use cases for both sSTB and rSTB tokens

• Governance Value: Decision-making power over a critical infrastructure protocol via quadratic voting {% endtab %} {% endtabs %}

Current Funding Round

We're currently raising $1 million in pre-seed funding via 20 million rSTB warrants at $0.05 per token, representing 2% of the total supply. This pre-seed round offers early investors a unique opportunity to secure governance rights and staking emissions in the STAB3L ecosystem.

Traction (Projected Q1 2025 Launch)

• Pre-Seed Round: $1 million via 20M rSTB warrants at $0.05/token (2% of supply)
• ICO Target: $20 million hard cap via FjordFoundry
• Testnet Goals: 1 million CUs staked, unlocking a 25.8 million rSTB airdrop (30% of first milestone)
• Partnerships: In progress with Golem, Akash, and Render Network for CU benchmarking

Investment Benefits

• rSTB Warrants: Secure governance tokens at $0.05/token

• Staking Emissions: Earn approximately 5% APR through staking

• Governance Rights: Participate in protocol decisions through quadratic voting

• Market Exposure: Gain early exposure to a $100B+ market opportunity

• Use of Funds:

  • 40% Development and Security
  • 25% Go-to-Market and User Acquisition
  • 15% Liquidity Provision
  • 10% Legal and Compliance
  • 10% Operations

Conclusion

STAB3L represents a paradigm shift in how compute resources are priced, allocated, and utilized. By creating the world's first compute-backed stablecoin protocol, we're addressing the critical challenge of price volatility in the compute market while providing a stable, efficient ecosystem for all participants.

Our dual-token system (sSTB and rSTB) creates a balanced economic model that separates utility and governance functions, with clear value accrual mechanisms for both tokens. The compute-backed stablecoin mechanism, where CU tokens are burned when exchanged for sSTB, ensures that each sSTB is backed by real compute resources and maintains its peg to 1 CU ($0.06).

With a dedicated team, comprehensive roadmap, and growing market demand, STAB3L is positioned to become the foundation for the future of stable, decentralized compute infrastructure.

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{% hint style="success" %} For investment inquiries, please contact invest@stab3l.com {% endhint %}

Contact Information:

• Website: stab3l.com
• Email: info@stab3l.com
• Twitter: @stab3l
• LinkedIn: linkedin.com/company/stab3l
• Discord: discord.gg/stab3l