The camTokens that are available to use as collateral are:
camWMATIC, camWETH, camWBTC, camDAI, and camAAVE
What are camTokens?
camTokens are amTokens (Aave market tokens) whose rewards are continuously compounded.
amTokens are received when users lend out tokens on Aave Polygon. For example, if a user deposits WMatic, they receive amWMatic tokens. These tokens serve as proof of ownership for the tokens lent out and also earn a return.
In order to redeem rewards from Aave for locking tokens on their platform, you have to continuously click “redeem”. If you want to earn yield on your rewards, you have to deposit the redeemed tokens into Aave through another transaction. The delay between earning rewards and depositing them into Aave causes users to lose yield on their capital. Compounding Aave market tokens (camTokens) automate this process so that users don’t lose out on yield.
Yearn Vault Tokens
Yearn vault tokens (yvTokens) are received when users deposit assets into Yearn strategy vaults. These vaults generate yield for the users through various strategies. Users can deposit yvTokens as collateral for MAI. This allows them to continue to accumulate yield from Yearn, while they borrow against that growing collateral value.
How will more collateral assets be added?
More collateral assets may be accepted to borrow MAI through community voting. At the moment, only tokens with a Chainlink oracle may be accepted as collateral. This is to ensure that price tracking for collateral assets is safe and reliable.
QiDao will release QIPs (improvement proposals) often to vote and approve the next collateral token. Voting power, referred to as Qi Powah, comes from the amount of Qi users hold. The more Qi Powah a user has the more voting power they receive. Users can increase their Qi Powah by locking their Qi up to 4 years in escrow to increase their voting power by up to 4x.