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Mai Finance
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Mai Finance
Official Mai Finance Documentation
Introduction
General
How Does it Work: Stablecoin Economics
Benefits & Use Cases
Revenue Streams
Collateral Types
Bridging
Liquidations
Debt Ceilings
Borrowing Incentives
Delegation
Risks
Security
Controlled Risks
Economic Risks
Hardware Sigs
New Asset Listing
Asset Onboarding Checklist
New Asset Proposal Template
Tokenomics
Qi Token
Qi Staking
Governance
Token Distribution
resources
MAI Universe
Links & Resources
Community Guide / Tutorials
Press and Branding Kit
Qi Glossary
Service Agreement
Smart Contracts
Important Addresses
Important Links & APIs
Smart Contract Functions
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Security

Who holds your tokens?

All funds are controlled by the users that deposit them. The QiDao Protocol does not have control over your funds or MAI debt.

Has the project been audited?

The QiDao Protocol has been audited twice. Initially by Bramah Systems: Here is the report. They have audited mStable, dYdX, SetProtocol, IchiFarm, and others in the past.
QiDao was also audit by Cloakwire: see report here.
As we add more features, we will get those audited as well. Please note that many auditing firms have a waitlist at the moment.

How is QiDao different from algorithmic (algo) stablecoins?

The QiDao Protocol does not rely on an algorithm to manage the stablecoin’s peg. The peg is maintained through organic market incentives and penalties. MAI’s value is backed by overcollateralized vaults of accepted tokens. This means that all MAI is always backed by more value than it is worth. Read more about how the peg is maintained here.

What safeguards are in place to protect the Protocol from black swan events?

Anchor:

When the price of collateral assets fall, demand for MAI increases as users try to buy MAI off the market to repay their loans. This can increase the price of MAI. The Anchor allows users to mint and redeem MAI at a fixed rate. This creates a risk-free arbitrage opportunity for users when the price is above or below the exchange rate. It also creates a price floor and ceiling for MAI.
Read more about Anchor here.

Debt Ceiling:

The debt ceiling is the maximum amount of MAI that can be minted. Each vault type has their own debt ceiling, which is periodically raised in response to demand and the MAI peg. The goal of the debt ceiling is to prevent a large amount of MAI from flooding the market that could negatively affect the MAI price.
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Controlled Risks
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Who holds your tokens?
Has the project been audited?
How is QiDao different from algorithmic (algo) stablecoins?
What safeguards are in place to protect the Protocol from black swan events?