QiDAO

Lending

QiDAO is a decentralized lending protocol that lets anyone mint or redeem the MAI stablecoin by depositing crypto assets as collateral. It is a fork of Maker on the Polygon network.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Mai is a solid borrowing protocol based on Polygon that enables overcollateralized loans paid out in its own MAI (miMATIC) stablecoin with zero-interest borrowing.
What we like less
The Mai platform has accumulated bad debt across its several alternative chain deployments, which could potentially lead to a bank run on the MAI stablecoin.
What it means for you
Offers you a great way to borrow an overcollateralized stablecoin and put it to use to earn yield for you across DeFi.

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Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $28.2M (Rank #112)
  • TVL Ranking by Lending: #0
  • Blockchain: Polygon, Base, Ethereum, Optimism, Metis, Linea, Avalanche, Fantom, Arbitrum, Binance, xDai, Moonbeam, Moonriver, Harmony
  • Chain TVL
    • Polygon: $15.12M
    • Base: $10.43M
    • Ethereum: $1.2M
    • Optimism: $419.03K
    • Metis: $273.52K
    • Others: $795.25K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • At least one moderate governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
  • Solid controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • Basic method to accrue protocol reserves
  • MAI is a Maker fork implemented on the Polygon chain
Things to know about QiDAO

How MAI (QiDAO) works

Mai is a decentralized borrowing protocol that allows borrowers to draw loans against crypto assets like ETH as collateral. Loans are paid out in MAI, a USD pegged stablecoin with a collateralization ratio of at least 110%. The MAI peg is further supported by the Anchor peg stability module. Anchor allows users to swap USD stablecoins for MAI at a 1:1 rate.

How MAI (QiDAO) makes money

Mai charges users a 0.5% repayment fee on their stablecoin debt when repaid to unlock the underlying collateral. This fee is paid in the same collateral asset with 70% distributed to the protocol treasury. A 0.5% deposit fee is collected when users deposit their liquidity provider (LP) tokens to participate in yield farming rewards; this fee is paid in the LP token. The protocol's Direct Deposit Module (DDM) supplies protocol-controlled MAI directly into external money markets to earn additional interest with 50% distributed back to the DAO treasury. Lastly, the Anchor module charges a 1% fee when minting and redeeming MAI with stablecoins. The platform does not charge any interest fees for minting MAI through its own vaults.

How you make money on MAI (QiDAO)

You can generate yield by staking the QI governance token to receive eQI (escrow QI) proportional to the total amount locked up and the duration chosen. QI stakers earn 30% of repayment fees, 100% of deposit fees, 30% of Anchor fees, and 50% of DDM revenue. Rewards are collected weekly and distributed on the following Wednesday.

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