DeFi

Blockchain analytics platform Nansen and yield infrastructure protocol MetaStreet have a new spin on decentralized physical infrastructure networks (DePIN) to share with tech-savvy investors. They have released a report calling attention to node financing (NodeFi) and&nbsp;graphics processing unit financing (GPUfi) as areas that may offer new opportunities as artificial intelligence drives demand for computer capacity.
<h2 id="defi-expands-depin-s-prospects">DeFi expands DePIN’s prospects</h2>
GPUfi provides yield from GPU rentals, and nodes can provide regular token distributions. Combining the two could give an investor an edge over investors who confine themselves to traditional finance.
The authors <a data-ct-non-breakable="null" href="https://research.nansen.ai/articles/nodefi-gpu" rel="noopener noreferrer nofollow" target="null" text="null" title="null">suggested</a> that NodeFi and GPUfi together could bring 30% to 200% yields through productive yield (sale of computing capacity and GPU rental), token emissions and decentralized finance (DeFi) trading. They said:
<blockquote>
 “By offering efficient and decentralized financing solutions, DePIN can tap into the unmet demand for high-performance GPUs, transforming a supply bottleneck into a lucrative investment opportunity.”
</blockquote>
Tokenizing nodes and GPUs offer benefits unavailable in traditional finance models, such as lending, yield speculation and self-repaying loans. There is limited onchain liquidity and financing at present, although some projects are already leading the way in this area.
Aethir’s DePIN GPU-as-a-service <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/aethir-decentralized-gpu-network-revenue-growth" rel="noopener noreferrer nofollow" target="null" text="null" title="null">has attained good results</a>, the authors noted. They also mentioned Elon Musk’s xAI, GAIB <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bsc-s-impossible-finance-raises-7m-for-multi-chain-defi-incubator" rel="noopener noreferrer nofollow" target="null" text="null" title="null">and Impossible Finance</a>.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hut-8-gpu-service-program-ai-developers" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Hut 8&nbsp;launches GPU-as-a-service program for AI developers</a>
<h2 id="as-long-as-you-do-it-right">As long as you do it right</h2>
There are multiple steps to set up NodeFi and GPUfi that range from easy to ill-suited for onchain implementation. “Efficient execution is critical to success,” the report noted. Nor is that the end of the potential pitfalls:
<blockquote>
 “The complexity of setup, accurate valuation and accounting, and navigating legal frameworks make this type of investment far more intricate than more straightforward instruments, such as treasury bills.”
</blockquote>
Earlier in October, Nansen and MetaStreet <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/nansen-beyond-defi-report-3-2-billion-market-ai-services" rel="noopener noreferrer nofollow" target="null" text="null" title="null">released a thematically related</a> report, “Object-Oriented Finance,” on the emergence of NodeFi.
<figure><img alt="Nansen highlights AI-fueled NodeFi, GPUfi for DePIN investment" src="https://s3.cointelegraph.com/uploads/2024-11/0192e86d-1bce-7d64-b417-3d5a381ad52e" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/metastreetxyz/status/1851659768278270046" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://x.com/metastreetxyz/status/1851659768278270046">MetaStreet</a>
 </figcaption>
</figure>
While Nansen and MetaStreet concentrated on opportunities stemming from the boom in AI, <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/decentralized-physical-infrastructure-network-depin-explained" rel="noopener noreferrer nofollow" target="null" text="null" title="null">DePIN has been harnessed</a> to provide services in many sectors, such as <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/world-mobile-tests-balloon-deliver-telecom-service-mozambique" rel="noopener noreferrer nofollow" target="null" text="null" title="null">telecommunications</a>, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/decentralized-network-uplink-40k-routers-cut-internet-cost-50" rel="noopener noreferrer nofollow" target="null" text="null" title="null">internet</a> and <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sui-blockchain-offline-crypto-transactions-radio-waves" rel="noopener noreferrer nofollow" target="null" text="null" title="null">banking</a>.
Magazine:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/10-crypto-theories-that-missed-as-badly-as-peter-todd-is-satoshi/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’</a>

Nansen highlights AI-fueled NodeFi, GPUfi for DePIN investment

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