Aethir, a decentralized cloud infrastructure provider, has partnered with MetaStreet, a leading finance firm, to introduce Yield Pass on the Arbitrum blockchain. This new initiative aims to enhance the decentralized finance (DeFi) landscape by transforming underutilized nodes into dynamic financial instruments through tokenization.

Yield Pass introduces a concept dubbed NodeFi, designed to integrate decentralized infrastructure with DeFi mechanisms. By doing so, it opens new pathways for liquidity, yield generation, and risk management, enabling node holders to maximize earnings and unlock the financial potential of their assets.

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The Role of Nodes

Nodes are the backbone of decentralized infrastructure, providing computation, storage, and scalability to blockchain networks. With the growing demand for web3 applications, cloud computing, and artificial intelligence (AI) solutions, the node economy is poised for significant expansion. Industry projections estimate that the global blockchain infrastructure market will exceed $100 billion by 2030.

Despite their importance, nodes have traditionally lacked liquidity and financial flexibility, limiting their application to network operations. Yield Pass addresses this gap, making nodes versatile financial assets. David Choi, cofounder of Permian Labs, the team behind the MetaStreet protocol, highlighted the untapped financial potential of nodes. “They hold immense intrinsic value but lack the liquidity and financial flexibility found in other asset classes. Yield Pass bridges this gap, turning nodes into dynamic financial instruments.”

Aethir and MetaStreet Launch Yield Pass on Arbitrum

Aethir’s Node Network and Capabilities

Aethir operates Checker Nodes, which underpin its Decentralized Physical Infrastructure Network (DePIN). These nodes offer enterprise-grade GPU cloud computing services to sectors such as gaming and AI. With over 43,000 GPUs, including 3,000 NVIDIA H100s, Aethir supports demanding workloads while ensuring service quality.

Node holders are rewarded with ATH tokens and ecosystem benefits through Aethir EcoDrops, but the partnership with MetaStreet significantly expands these opportunities. Leveraging MetaStreet’s expertise in Object-Oriented Finance, Yield Pass introduces innovative tools for optimizing liquidity, yield, and risk management. Yield Pass enables node holders to tokenize future node emissions and trade them as financial instruments. The initiative introduces two key assets:

1. Yield Pass (YP): An ERC-20 token representing future yield emissions.
2. Discount Pass (DP): An ERC-721 token representing ownership of the node without its future yield emissions.

This structure allows node holders to:

• Sell future emissions while retaining node ownership.
• Borrow against Discount Pass tokens for reinvestment.
• Hedge risks associated with node operations.

Additionally, holders can enhance their earnings through staking and participating in MetaStreet’s Ascend loyalty program, earning incentives like Node Crystals. Aethir also recently announced a significant investment of $100 million aimed at fostering innovation in the fields of artificial intelligence (AI) and gaming. This initiative will be facilitated through the Aethir Ecosystem Fund, which includes the Aethir Catalyst, a dedicated $20 million grant program backed by the Aethir Foundation.

Aethir Catalyst Launches $100M Investment Fund

Why Arbitrum?

The companies selected Arbitrum for its scalability, low transaction costs, and robust ecosystem. As a leading Layer 2 blockchain, Arbitrum provides the necessary infrastructure for seamless minting, trading, and liquidity provision. Its advanced features make it an ideal platform for fostering NodeFi innovations and integrating decentralized infrastructure with DeFi.

Dan Wang, CEO of Aethir, commented: “Partnering with MetaStreet to launch Yield Pass on Arbitrum creates unparalleled opportunities for our community. It’s a major step forward in integrating decentralized infrastructure with decentralized finance.”

Source: GamesBeat