Project: Qi Dao (running through Mai Finance)

Type: Decentralized finance protocol

One-Liner: ”QiDao is a way for you to hold on to your crypto while still being able to spend its value. It allows you to borrow stablecoins (tokens pegged to $1) at 0% interest, without selling your crypto”

Chain: Polygon

Summary:

First, we need to separate Qi Dao from Mai Finance.

• QiDao is the protocol that enables the minting of MAI stablecoins
• Mai Finance is the frontend for the QiDao Protocol‌

To participate on Qi Dao you will end up using the Mai Finance app (https://app.mai.finance/). Now we can move on with what’s the protocol about!

Mai Finance is a way for you to keep your crypto and still be able to spend its value. That means you're able to borrow stablecoins without having to sell your crypto assets, and do so at 0% interest.

The process is simple: you create a vault, deposit your crypto assets, and start borrowing stablecoins against your collateral’s value.

Mai Finance is a website that connects users to the QiDao Protocol, which is where the vaults are created and stablecoins are borrowed.

*A quick example on how you can use QiDao

BadLuckBessa has a small business. His business has 100,000 MATIC tokens as assets. Unfortunately (as expected), BadLuckBessa’s laptop suddenly stopped working, and he will now need a new one.

The dilemma that BadLuckBessa has now is whether to sell his MATIC to buy his new laptop or keep his MATIC because he is bullish about its long term potential to be worth more. QiDao doesn't want you to have to choose.

By using QiDao, BadLuckBessa can deposit his 100,000 Matic in a vault and borrow stablecoins against that collateral to purchase his new MacRekt Pro. BadLuckBessa gets his new computer and gets to keep all of his MATIC. So, if MATIC prices increase next week, BadLuckBessa will still be able to realize those gains. Meanwhile, the stablecoins BadLuckBessa took out against his collateral can be paid back at any time and do not incur any interest.*

QiDao is Polygon's first native stablecoin protocol. It is self-sustaining, community-governed, and decentralized. Loans are secured by always having more value locked than the amount of debt given out. Loans are paid out and repaid in MAI (a stablecoin soft pegged to the USD). Components of QiDao include the following:

• Overcollateralized vaults: MAI relies on collateral vaults to back its value. At all times, MAI stablecoins are fully backed by collateral.
• Vault: Where users deposit their token collateral and borrow MAI. Vaults are user managed and controlled.
• Decentralized and user-managed: MAI is built on market incentives and penalties. There is no centralized authority or algorithm controlling the protocol. Only users can control their funds.
• Two tokens: MAI is the stablecoin made by the QiDao Protocol and Qi is the protocol’s governance token.

Details on MAI, QiDao’s stablecoin

What is MAI (miMatic)?