MAI (Avalanche)

miMATIC

miMATIC is an overcollateralized and decentralized stablecoin by the Mai protocol.

Risk Rating
Best
$0.85
-0.49%
Summary
What we like
Offers users a permissionless, decentralized method to gain exposure to a non-volatile store of value that is backed by its underlying collateral.
What we like less
The underlying collateral composition for miMATIC (MAI) consists of more volatile assets, which has lead to the accumulation of bad debt.
What it means for you
MAI enables you to hedge your portfolio in volatile market conditions and also provides an easy way to put USD to work for you in DeFi.
Information
Blockchain
  • Avalanche
Key Metrics
  • Market Cap: $23.5M
  • Fully Diluted Valluation: $258.7M
  • FDV / MC: 11
  • Ranking inside Exponential (among stables): #26
  • Circulating Supply: 27,563,987
  • Total Supply: 303,404,342
  • Volume (24H): $68.3K
  • ATH: $1.35 (05/29/2021)
  • ATL: $0.66 (10/30/2023)
Risk Assessment
Best
Asset Strength

miMATIC is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of MAI (QiDAO), a protocol rated as Watch out.

miMATIC is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.

Asset Tokenomics

miMATIC has an uncapped supply but has inflation control or burn mechanisms in place. Qi Dao employs a similar mechanism to Maker`s Peg Stability Module (PSM) called Anchor to maintain MAI stability. The Anchor is a decentralized exchange that allows users to swap USD stablecoins for MAI at a 1:1 rate. This is another important peg stability factor as it provides liquidity around the peg.

Asset Volatility

miMATIC is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value. Qi Dao employs a similar mechanism to Maker's Peg Stability Module (PSM) called Anchor to maintain MAI stability. The Anchor is a decentralized exchange that allows users to swap USD stablecoins for MAI at a 1:1 rate. This is another important peg stability factor as it provides liquidity around the peg.

Dependencies

QiDAO

Things to know about MAI

How is MAI created?

MAI is a collateral-backed stablecoin created by Qi DAO. Its value is pegged to the USD and kept stable through an economic system of aligned financial incentives. MAI is minted when users borrow against locked collateral and burned when debt is repaid.

What is MAI used for?

MAI is a price-stable asset that is mostly used as a hedge against volatility as it maintains a stable value of around 1 USD. Users need an alternative store of value and medium of exchange to navigate the highly volatile crypto markets. MAI addresses this problem for crypto native users, as well as enables a wide range of financial activities including hedging during periods of high market volatility, market making against a stable asset, and use as collateral for leveraging.

How is the price of MAI kept stable?

MAI is an asset-backed currency that maintains a free-floating peg to the USD. This means that its value may differ from exactly 1 USD from time to time given current market conditions. MAI follows the DAI overcollateralization model to maintain its peg via a combination of external market forces, internal economic incentives, and policy tools controlled by QI token holders. The different market actors all acting in self-interest, work in concert to maintain MAI's stability. Vault owners play an important role in maintaining the peg by minting MAI when spikes in demand push its price above 1 USD, and conversely purchasing MAI to pay down their debt at a discount when it trades below 1 USD. Qi Dao uses Anchor to maintain MAI stability through a 1% minting and redemption fee. The Anchor allows users to swap USD stablecoins for MAI at a 1:1 rate. This is another important peg stability factor as it provides liquidity around the peg. Arbitragers contribute to maintaining the MAI peg through by taking advantage of price differences between Anchor and various market makers.