MAI

What is MAI?

MAI, a USD stablecoin, is exclusively backed by decentralized tokens. It aims to maintain a target peg of 1% relative to the US Dollar. Users can only mint MAI by engaging in overcollateralized debt positions.

Being a decentralized stablecoin, MAI is resistant to manipulation by centralized entities.

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Recent Video Interview

Main points of the interview:

• The origins of the QiDao project.
• Explained the unique features and benefits of the ChiDao protocol and its stablecoin, MAI.
• Addressed the zero percent interest loans and the decision behind it.
• Partnerships with other projects and the cross-chain presence of MAI.

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What is MAI Finance?

Mai Finance serves as the user interface and dashboard for the QiDao Protocol, enabling users to connect to the protocol through a web platform.

QiDao functions as an overcollateralized stablecoin protocol designed to facilitate native stablecoin minting across various blockchains. It operates as a self-sustaining, community-governed, and decentralized system. The security of loans is ensured by maintaining collateral value greater than the debt amount. Transactions within QiDao involve the use of MAI, a stablecoin with a soft peg to the USD. Key components of QiDao include:

• Overcollateralized Vaults: MAI's value is supported by collateral vaults, ensuring that MAI stablecoins are constantly fully backed by collateral.
• Vaults: Users utilize vaults to deposit their token collateral and borrow MAI. Vaults are under the control and management of individual users.
• Decentralized and User-Managed: MAI operates based on market incentives and penalties, with no centralized authority or algorithm overseeing the protocol. Users exclusively retain control over their funds.
• Two Tokens: MAI serves as the stablecoin generated by the QiDao Protocol, while Qi functions as the governance token for the protocol.

How Does MAI Work?

MAI requires users to lock collateral, which can include static tokens like LINK and CRV, or alternative assets such as Beefy and Yearn strategies. Interest-bearing collateral, like Beefy, Yearn, and Aave receipt tokens, enables users to accrue yield while their collateral is deposited in MAI vaults.

To maintain the peg at $1, QiDao employs several mechanisms:

1. Interest Bearing Stable Collateral Vaults: When the MAI peg exceeds $1, debt ceilings for interest-bearing stable vaults are increased. The high LTV ratio and low risk make these stable vaults attractive for leveraging, exerting selling pressure on MAI and helping restore the peg to $1.
2. Liquidation Ratio: The liquidation ratio, setting the minimum collateral to debt ratio, ensures that every MAI is backed by collateral value. Vaults falling below the liquidation ratio can undergo partial liquidation, where a liquidator repays some of the vault's debt in exchange for receiving a portion of its collateral. The initial liquidation ratio is set at 150%, subject to potential changes through community proposals and voting.
3. Collateral Token Fluctuations: Vaults are overcollateralized (by 130-150%) to maintain collateral value supporting minted stablecoins. As collateral value rises, more stablecoins can be issued, increasing the collateral to debt ratio. Conversely, as collateral value falls, fewer stablecoins can be issued, maintaining the minimum collateral to debt ratio for each vault type.

The impact of collateral price changes on the QiDao protocol is as follows:

• If collateral market price decreases, the collateral to debt ratio decreases, prompting users to deposit more collateral or repay their MAI debt.
• If collateral market price increases, the collateral to debt ratio increases, allowing users to either borrow more MAI or withdraw some of their collateral.

MAI Team Background and Partners

The team behind MAI Finance and Qi DAO is anonymous. Not much info is known other than that one of the founder goes by the alias 'Lao Zi'.

Mai Finance partners with many huge blockchain projects, such as QuickSwap, Polygon, Balancer, Aavegotchi, Aave, Chainlink, Curve, Stake DAO, Beefy Finance, Beethoven X.