Mai Finance

Mai Finance

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: 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.

What is MAI (miMatic)?

MAI is a stablecoin backed by locked collateral tokens. MAI borrowing is decentralized and non-custodial, meaning that only users have control over their funds.

How are these stablecoins created?

MAI can only be made through locking collateral to back its value - either through approved collateral in vaults or through Anchor. Collateral can be static tokens like LINK, CRV, and others. It can also be exotic assets like Beefy and Yearn strategies. Interest-bearing collateral like Beefy, Yearn, and Aave receipt tokens allow users to accumulate yield from their collateral while it's deposited in MAI vaults.

To make MAI through vaults, users can deposit collateral in their vaults and mint MAI against it. You will not be charged interest for minting MAI through vaults. This means you can hold MAI debt long term without accruing costs.

Y

our newly minted MAI can be found in your wallet. You may have to add MAI as a custom token in your wallet using the MAI (miMatic) Polygon Contract Address: 0xa3fa99a148fa48d14ed51d610c367c61876997f1

Benefits to the users

QiDao enables users to be their own banks.

• Take advantage of 0% interest leverage: You can sell your MAI to buy more of your collateral tokens, levering your long positions. The QiDao Protocol does not charge interest fees, only a repayment fee at time of closing. This means that collateral token holders can maintain a levered long position in their collateral with minimal financial stress, focusing on their principle belief that their collateral’s price will increase.

• Zero-interest borrowing: Borrow stablecoins against your collateral at 0% interest.

• Borrow to “hold on for dear life” (HODL): Borrow stablecoins backed by your tokens to use the value of your tokens without exiting your long position.

• Borrow to buy other assets: Borrow against your existing wealth and buy more assets, expanding your investment portfolio. You could, for example, borrow MAI to buy other tokens such as ETH to hedge your Matic exposure.

• Consolidating debt: Borrow MAI to pay down high-interest debt, saving on interest payments. The only fees you will incur through borrowing MAI will be a repayment fee at the end of your loan.

• No scheduled payments: You won’t need to commit to monthly payments or deadlines; you can repay your debt at any time that is convenient to you and your needs.

• Instant lines of credit: You don’t need credit checks or someone else's permission to borrow miMatic. You are your own bank.‌

• MAI as collateral: Lending protocols require stablecoins to borrow tokens. You could use MAI as stablecoin collateral in those platforms, essentially using your original tokens as collateral for debt in lending protocols.

How does the protocol earn revenue?

1. Repayment Fees

Users pay a repayment fee equal to 0.5% of their debt when repaying their stablecoin debt to unlock the underlying collateral. This fee is denominated in the collateral token.

Example: A user has 100 USD worth of Matic and 50 MAI (miMatic) in debt. They then repay 10 MAI. The fee paid by the user would be 0.05 USD worth of Matic (10 MAI * 0.5% fee).

2. Deposit Fees

Deposit fees are paid by users when they submit their liquidity pool (LP) tokens to participate in liquidity mining rewards. The fee is denominated in LP tokens and is equal to 0.5% of the LP token value.

Example: A user that provided 100 USD in liquidity will pay a 0.5 USD fee (100 USD * 0.5% fee) when depositing their LP tokens on the MAI rewards page.

3. Anchor Fees

There’s a 1% fee when minting MAI with stablecoins or redeeming stablecoins from MAI through Anchor. As a result, the price to mint 1 MAI is 1.01 accepted stablecoin and 1 accepted stablecoin can redeem 0.99 MAI.

Example: A user swaps 100 USDC for MAI on Anchor. The user will receive 99 MAI for this exchange (100 MAI - 100 * 1% fee).