Add MAI on Aave V3

Proposal to add support for MAI (aka miMatic) on Aave V3 (On Polygon, Fantom, and Avalanche)

Summary

MAI is the first and largest stablecoin project on Polygon and Fantom. It is an overcollateralized stablecoin that is non-custodial. All MAI is backed by collateral locked in user-managed vaults. MAI minting is available on 8 chains, and bridging to 18 chains.

All accepted collaterals are priced using Chainlink price feeds. MAI has stayed within its peg through several market downturns.

There’s around 250M MAI minted, with liquidity on all top DEXs in which MAI is present. A significant portion of liquidity for MAI is on Curve. MAI hosts the largest pool on Curve Polygon and the pool with most volume on Curve Fantom.

Risk Parameters

  • V3 Efficiency mode stablecoins: 97% LTV, 98% Liquidation threshold, 10% reserve factor
  • V3 Isolation mode: 75% LTV, 80% liquidation threshold, 10% reserve factor, $50M initial debt ceiling

Specifications

  1. What is the link between the author of the AIP and the Asset?

Core team at QiDao Protocol.

  1. Provide a brief high-level overview of the project and the token

MAI is the first and largest stablecoin protocol on Polygon. It allows users to lock their tokens and use them as collateral to mint MAI at 0% interest.

MAI is an overcollateralized CDP stablecoin on Polygon, Avalanche, Fantom, Arbitrum, Harmony, Moonriver, and Gnosis Chain. MAI is one of the most crosschain assets in DeFi, currently on 18 chains through Multichain. Accepted collateral includes interest-bearing assets like Aave Market Tokens. Users are not charged interest for borrowing MAI - instead, they are charged a 0.5% fee upon repayment.

Despite market downturns during its existence, MAI has maintained its peg.

MAI currently has a TVL of around $310M, and has around 250M MAI outstanding.

  1. Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

Being the largest native stablecoin on Polygon and Fantom, MAI has a wide reach within the native projects on those chains. Listing MAI would connect Aave to most communities in these chains through the integrations already made by MAI.

MAI is one of the most crosschain assets, available on 18 chains through canonical bridging. As a result, users will be drawn to borrow MAI to bridge value to other chains and take advantage of the many yield opportunities that MAI has.

MAI’s risk profile is low. It is used by large institutions like Celsius and Polygon. MAI has also received grants from several blockchains, including Polygon, Fantom, Harmony, Aurora, and IoTeX.

  1. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?
  • MAI is governed by the QiDao Protocol, a community-run DAO around the QI token.
  • Several other projects have participated in our DAO through proposals and bribing, including Frax Finance, Stake DAO, Celsius, PolygonDAO, SpiritSwap, SpookySwap, Gotchi Vault, and Beefy Finance
  • The Polygon Alliance was recently set up to participate in QiDao.
  1. How is the asset currently used?
  • Lending (Market.xyz, Impermax, Tarot)
  • Listed on several DEXs on 18 chains. Main DEXs are Curve, Balancer, QuickSwap, SpookySwap, SpiritSwap, Solidly, Saber, and TombSwap
  • Largest volume on Curve Fantom
  • Largest pool on Curve Polygon
  • MAI is used by Celsius to borrow against their AUM
  • MAI has been used by Polygon to award bounties
  • MAI offers low-cost leverage to strategies on Stake DAO, Yearn, Beefy, and Aave
  1. Emission schedule
  • Users can mint MAI by locking up their assets and borrowing against that value at 0% interest. Temporary debt ceilings serve as the a supply mitigation.
  1. Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?
  • All funds stored as collateral are fully controlled by users
  • There is a 3/5 multisig, comprised by the QiDao team. Team members are doxxed and regularly appear on podcasts, live streams, and crypto conferences
  • The multisig executes the results of Snapshot votes: liquidation ratios for new collaterals, partnerships, and debt ceilings. There have been over 70 votes since the start of the DAO: see votes here.
  • Since the protocol uses canonical bridging, QiDao retains the power to mint MAI on chains it is bridged to.
  1. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)
  • Market Cap: ~$250M
  • 24h Volume: >$40M
  • Volatility: Low
  • Exchanges: Curve, Balancer, QuickSwap, SpookySwap, SpiritSwap, Saber, Beethoven, Solidly, TombSwap, Solarbeam, Trader Joe, Crodex, ZoomSwap, PaintSwap, Elk Finance, and Rose
  • Maturity: Launched 5/4/21
  1. Social channels data (Size of communities, activity on Github)

Posted separately due to restrictions on amount of links in a post.

  1. Contracts date of deployments, number of transactions, number of holders for tokens

MAI token

  • Date of deployment: May 4, 2021
  • Number of transactions: +3M
  • Number of crosschain token holders: 16k+

Security Considerations

MAI has undergone 2 thorough audits (linked below). Constant internal reviews are performed to ensure MAI’s economic and technical safety.

The protocol currently has around $300M TVL.

First audit: Bramah Systems

Second audit: Cloakwire

16 Likes

Links (1/3)

5 Likes

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5 Likes

Strongly strongly support! Love seeing isolation mode in action to list new assets asap!

5 Likes

MAI is an arbitrageurs dream :heart_eyes:

4 Likes

Well presented, I would love to see MAI added to the AAVE platform

5 Likes

Full support to see MAI on AAVE.

Qi Dao has been successful even after the first Polygon incentive programs died down, and alt L1’s took everyones attention. Qi Dao has now expanded into 18 new chains, and It’s been amazing being able to use AAVE as collateral and borrow against it with MAI. Qi has also supported the Aavegotchi ecosystem and even added vGHST as collateral. My QI is locked for a long time because I believe this project has a solid team and foundation and can quickly catch up to SPELL / MIM.

5 Likes

Full support from me on this. Mai is one of the few stablecoin protocols that chooses with security and stability in mind at the expense of other metrics and this is a huge plus for a token that aims to keep a stable peg. Great community, great team, great opportunity for both aave and mai.

3 Likes

I fully support this proposal. AAVE on Polygon and the MAI stablecoin are integral to my investments.

2 Likes

I fully support QiDao , this is the best project on polygon

1 Like

It is a exciting opportunities for both QiDao and AAVE.

1 Like

As an investor in both protocols i approve. The Qi dao team is a sharp bunch, MAI and Qi are strong with great backing. Lets do this

3 Likes

This proposal has my full support. DAI and MAI are my decentralized stables of choice, with MAI in particular looking better and better each day as the crypto community turns more of its attention towards censorship resistant stables. I look forward to seeing the additional strategies that would open up to Aave users when another quality stablecoin like MAI is added to the platform.

1 Like

From an external point of view (I don’t have any relation with the QiDAO protocol), it seems the position of MAI is solid enough to consider its listing, especially on V3, which has native protection mechanism for new listings.
That being said, it is fundamental to understand further all the different potential risks of the asset, for example, liquidity abundance and fragmentation between platforms, permissions on the asset itself and its collateralization system, or planned decentralization plans.
The OP already did a good summary of all, but I think the community would be even more comfortable with more details about the last aspects I mentioned, concerning decentralisation.

1 Like

MAI’s ability to maintain peg has been hugely successful, showing the massive success of QiDao. I totally support adding MAI to AAVE and am super excited to see the growth it enables for QiDao. Plus the Qiwars have been exciting af

1 Like

I like MAI. Their contracts are simple and easy to understand, and IMO they have safe debt limits across all chains. I think the biggest risk is the fact that the funds are bridged (and MINTED!) across many chains, so I wonder if we can hear more about how that’s secured? Let’s see it done!

expressing my support for this proposal.

Having MAI on Aave v3 emode will help MAI maintain their peg while providing an additional source of yield and utility for MAI holders.

1 Like

Well presented Benjamin, thank you

Strong support for this proposal

Hello,

I see a Snapshot has been created to list MAI on V3 Polygon, Avalanche and Fantom. But as it is, it seems the Aave community is lacking crucial information to understand the risks of MAI and take a decision.

What are the smart contract, governance and market risks of MAI? In terms of governance, I’m concerned by the 3/5 multisig, comprised exclusively by the anon QiDao team and no community member.

Could you please provide a risk analysis for MAI as described in New Asset Listing - Governance you can use the Aave Risk Aave Risk Methodology. What is the liquidity situation on those chains? To be an emode collateral, significant liquidity is required to handle quick liquidations with limited price impact.

These questions have also been raised by community members in previous comments.