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 mints 50 MAI. They then decide to repay 10 MAI. The fee paid by the user would be 0.05 USD worth of Matic (10 MAI * 0.5% fee).

2. Farming Deposit Fees

Deposit fees are paid by users when they submit their liquidity pool (LP) tokens to participate in our 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. Direct Deposit Module (DDM)

QiDao’s DDM allows for the protocol to supply protocol MAI directly into money markets, such as Market.xyz. The MAI borrowed by users through external markets will earn interest. The interest earned through these money markets will go the DAO.
Example: A user that provided 100 USD worth of collateral and borrowed 50 MAI will be charged an interest rate on the 50 MAI borrowed.

Is there an interest rate fee?

No, there is no interest rate for minting MAI through vaults on Mai.finance.
MAI borrowed through external money markets will incur interest fees.

How are revenues distributed?

50% of repayment fee revenue is distributed to Qi stakers, following the passage of QIP 004. The rest of the revenue is held in the treasury.
100% of deposit fee revenue is used to farm in QiDao farms, following the passage of QIP 013. 100% of the rewards earned go to Qi stakers.
50% of DDM revenue is distributed to Qi Stakers, following the passage of QIP 073. The rest 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.