MIMATIC

MAI (mimatic) is a decentralized USD stablecoin launched by Mai Finance, which serves as the frontend for the QiDao Protocol. Its primary function is to enable users to borrow stablecoins against their crypto assets without selling them, offering 0% interest loans. MAI is minted through overcollateralized debt positions using decentralized collateral, ensuring its stability and targeting a 1% peg to the US Dollar. This allows users to unlock liquidity from their digital assets while retaining ownership.

MAI solves the challenge of needing to sell valuable cryptocurrency assets to gain immediate liquidity or spend their inherent value. By allowing users to borrow MAI (mimatic) at 0% interest against their existing crypto, it provides a means to leverage digital assets without incurring taxable events or losing exposure to potential gains. This empowers users to maintain their crypto holdings while accessing funds, enabling instant loans and flexible financial management within the DeFi space.

MAI (mimatic) stands out by being native to each blockchain ecosystem it operates on, including its significant presence in the Polygon Ecosystem and others like Celo and Moonbeam. This means MAI is minted directly on these chains using local collateral, unlike many decentralized stablecoins that are initially minted on one chain and then bridged, which can introduce bridge risk. Additionally, MAI is an overcollateralized protocol, not an algorithmic stablecoin, providing a robust and decentralized alternative for stability in the cryptocurrency market.

MAI employs three primary stability mechanisms: The Peg Stability Module allows direct 1:1 redemption with approved stablecoins creating arbitrage opportunities. Interest rate adjustments incentivize debt repayment when the peg drifts below $1. Finally, overcollateralization (130-150%) and liquidation safeguards ensure sufficient collateral backing at all times.

aveQI enhances governance participation and revenue sharing through Balancer QI-ETH LP token locking. Users locking larger amounts for longer durations (28 days to 4 years) receive: Boosted voting power in proposals, higher shares of weekly protocol revenue distributions, and eligibility for BAL rewards from Balancer gauge incentives. This model improves liquidity while avoiding inflationary token rewards.

Yes, QiDao uniquely accepts interest-bearing collateral tokens including Aave aTokens, Yearn vault receipts, and Beefy strategies. This enables simultaneous yield generation on deposited assets while using their value to mint MAI. The protocol automatically compounds these yields within vault positions without requiring user intervention.

Multiple safeguards exist: A 4/6 Guardian multisig (including external experts like Aave's Marc Zeller) provides attack mitigation. Proposal thresholds require 150,000 aveQI to submit, preventing spam. Critical proposals undergo Discord townhalls before Snapshot votes. Additionally, the DAO cannot access user funds – governance powers exclude asset management capabilities.

QiDao's "buyRisky" function transfers undercollateralized positions to liquidators instead of partial repayments. This eliminates death spiral risks common in lending protocols where liquidation bonuses exacerbate undercollateralization. Liquidators acquire positions at no cost but must repay debt to restore health, incentivizing prompt resolution even below 100% collateralization.