QiDao is a complex ecosystem that helps hundreds of thousands investors optimize and get more value out of their investments.
QiDao - A long lasting ecosystem!
QiDao is not an algorithmic stablecoin; it is an overcollateralized stablecoin system. To create the superior protocol they have today, fusing the best of both worlds, the developers drew inspiration from other stablecoin systems as well as the community and ecosystem.
Loans from QiDao are interest-free and a variety of different types of collateral are accepted. Their token, $MAI, is minted on a variety of chains. The transaction times and costs are significantly decreased as a result. Because QiDao is built across numerous chains, users can engage with the protocol and complete more transactions without worrying about gas costs.
The only way that $MAI, the stablecoin backed by collateral and may only be minted with its collateral. Users that place accepted tokens as collateral in vaults and then get loans secured by those tokens are creating MAI.
What is MAI?
The stablecoin called MAI (miMATIC) is supported by locked collateral tokens. Since MAI borrowing is non-custodial and decentralized, only users have access to their money.
Only by securing collateral to guarantee its value, through the approved collateral in vaults; can MAI be minted. Static tokens like LINK, CRV, and others may be used as collateral as well. Exotic assets like the Beefy and Yearn strategies are another possibility.
Users can gain yield from their collateral while money is deposited in MAI vaults by using interest-bearing collateral like Beefy, Yearn, and Aave receipt tokens.
Users can also place collateral in their vaults and mint MAI against it in order to make MAI through vaults. For minting MAI through vaults, there will be no interest applied. As a result, you can hold MAI debt for a long time without incurring expenses.
Why is QiDao so amazing?
You can leverage your long holdings by selling your MAI and purchasing more of your collateral tokens. The QiDao Protocol only levies a repayment cost at the time of closing, not interest fees. As a result, holders of collateral tokens can maintain a leveraged long position in their collateral with no financial strain, relying instead on their fundamental conviction that the value of their collateral will rise.
Stablecoins can be borrowed at 0% interest in exchange for your collateral. To leverage the value of your tokens without selling your long position, borrow stablecoins backed by your tokens. Increase your investment portfolio by taking out a loan against your current assets to purchase new ones. To reduce your exposure to Matic, you may, for instance, borrow MAI and use it to purchase other tokens, like ETH. Take out an MAI loan to pay off high-interest debt and avoid paying interest. You won't pay any other costs aside for a return fee when your loan is over if you borrow MAI.
You won't be obligated to make regular payments or meet deadlines; instead, you can pay off your debt whenever it suits your requirements and schedule. To borrow MAI, you don't need to have good credit or permission from anyone else. Your personal bank is you. To borrow tokens, lending protocols need stablecoins. In those projects, you could utilize MAI as stablecoin collateral, effectively leveraging your original tokens as loan collateral in lending protocols.
The launch of QiDao V2
In May 2021, Polygon received the first QiDao Protocol smart contracts, enabling users to create stablecoins natively against MATIC. Later, V1 developed into the first significant stablecoin platform that was entirely independent of Ethereum.
The QiDao protocol now accepts over 70 collaterals on 10 chains, as opposed to the early versions of the protocol that only accepted MATIC as collateral. By using canonical bridging, MAI has also increased its liquidity presence and can now be spanned to approximately 20 different chains while retaining fungibility. The QiDao Protocol has been updated with QiDao V2, which adds new capabilities and enhances the protocol. A redesigned liquidation engine, enhanced risk management tools, and chain-specific customizing are the most important updates.
With more user control over their lending experience, these enhancements seek to increase the protocol's overall stability and security.
Chainlink Integration and future plans
Chainlink Price Feeds have been incorporated by QiDao into Mai Finance, a multi-chain stablecoin platform. They now have access to market-leading price data feeds that assist collateral value calculations on the Ethereum deployment of Mai Finance thanks to the integration of the decentralized oracle network.
Infrastructure for Chainlink is easy to integrate and has been used in production for a long time. For tens of billions of dollars' worth of smart contracts, leading DeFi protocols are already secured by Chainlink, which manages to maintain strong security and high availability even in the face of unanticipated occurrences like exchange outages, flash crashes, and data manipulation attacks via flash loans.
By offering a simple-to-use multi-chain stablecoin system, QiDao hopes to remove the hurdles to taking part in DeFi. The protocol makes it possible to create MAI, a stablecoin with a soft peg to the US dollar. In order to borrow the stablecoin with 0% interest, MAI uses overcollateralized vaults where customers can deposit a variety of supported collateral.
QiDao is a complex ecosystem that helps hundreds of thousands investors optimize and get more value out of their investments. This platform has evolved beautifully over the years, expanding its technology and synergizing with other projects.
Website - https://app.mai.finance/
Discord - https://discord.gg/mQq55j65xJ
Twitter - https://twitter.com/QiDaoProtocol
Telegram - https://t.me/QiDaoProtocol
Nov 15, 2022