Revenue Streams

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).

Is there an interest rate fee?

No, there is no interest rate for borrowing MAI.

How are revenues distributed?

30% of all revenue is distributed to Qi stakers, following the passage of QIP 004. The rest of the revenue is held in the treasury.

Where are revenues stored?

Repayment revenue is stored in vault 0, deposit fees are stored in the treasury, and Anchor fees are stored in the Anchor contract.

How can I track the Protocol’s revenue?

All revenue data can be seen in the Analytics page at app.mai.finance/analytics.
Last modified 2mo ago