> For the complete documentation index, see [llms.txt](https://enhanced-basis-protocol-whitepap.gitbook.io/ai-algorithmic-stablecoin-protocoll-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://enhanced-basis-protocol-whitepap.gitbook.io/ai-algorithmic-stablecoin-protocoll-whitepaper/5.-ai-algorithmic-stablecoin-protocol-phase-2.md).

# 5. AI Algorithmic Stablecoin Protocol (Phase 2)

### 5. AI Algorithmic Stablecoin Protocol (Phase 2)

#### 5.1 Overview

We will develop a sustainable stablecoin protocol inspired by Basis Cash but with improved mechanisms for stability and longevity.

#### 5.2 AIA Holder Benefits

* **Liquidity Supply Reserve:** 5% of the initial supply of AIA will be used for liquidity provision for the stablecoin and AIA pair.
* **Share Token Farming Rights:** AIA holders will be granted the right to farm the share token of the stablecoin protocol.

#### 5.3 Token Structure

* **USD-Pegged Token:** The stablecoin itself.
* **Share Token:** Possesses governance rights and rights to profit distribution of the protocol and can be farmed by AIA holders.
* **Bond Token:** Functions as part of the price stabilization mechanism.

#### 5.4 Token Economics

The token economics of the stablecoin protocol itself will be designed separately, and details will be announced in the future.

#### 5.5 Role of the AI Agent

The AI agent may also provide functions such as price prediction in this stablecoin protocol (details to be announced in the future).
