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The Dao is like a well: used but never used up. It is like the eternal void: filled with infinite possibilities.
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 mint 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.
Elon has a small business. His business has 100,000 MATIC tokens as assets. Unfortunately, Elon’s laptop suddenly stopped working, and he will now need a new one. The dilemma that Elon 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, Elon can deposit his 100,000 Matic in a vault and borrow stablecoins against that collateral to purchase his new Macbook Pro. Elon gets his new computer and gets to keep all of his MATIC. So, if MATIC prices increase next week, Elon will still be able to realize those gains. Meanwhile, the stablecoins Elon took out against his collateral can be paid back at any time and do not incur any interest.
QiDao is an overcollateralized stablecoin protocol, meant to offer native stablecoin minting for several blockchains. 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.