STAB3L: Stabilizing the Compute Economy with sSTB and rSTB

Mitchell McLennan

March 2025 (Enhanced Edition)

{% hint style="info" %} This whitepaper presents STAB3L, a dual-token protocol designed to stabilize the volatile pricing of computational resources through a compute-backed stablecoin system. {% endhint %}

Abstract

STAB3L introduces a dual-token, compute-backed stablecoin protocol designed to stabilize the volatile pricing of computational resources, a critical bottleneck for AI, blockchain, and scientific innovation. The protocol addresses the $500 billion global compute market by anchoring its stablecoin, sSTB, to 1 Compute Unit (CU), defined as 10^15 floating-point operations per second (FLOPs), benchmarked against high-performance instances like AWS p4d.24xlarge (10,000 CUs, nominally $0.06/CU at launch, subject to market-driven volatility of ±30%). The rSTB token serves as a reward and governance token, appreciating over time to incentivize participation, maintain peg stability, and enable dynamic system adjustments.

This whitepaper provides a rigorous, mathematically grounded framework for STAB3L's architecture, validated through simulations and real-world testing, positioning it as a best-in-class solution for compute stabilization. The protocol's design mitigates energy, hardware, and demand risks through dynamic governance, liquidity incentives, and risk management, ensuring predictable compute costs for users while incentivizing providers to maintain a robust supply of CUs.

Table of Contents

1. Introduction
2. Problem Statement: Compute Market Volatility
3. The STAB3L Solution
4. System Architecture & Mathematical Model
5. Dynamic Governance & Parameter Adjustment
6. Liquidity, Market Depth, & Incentives
7. Risk Management for Compute Providers
8. Regulatory and Legal Considerations
9. User Adoption & Onboarding Strategies
10. Scalability & Long-Term Sustainability
11. Stress Testing & Failure Analysis
12. Conclusion & Future Roadmap