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 new features are added, more audits will take place.

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?

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.
Risk Management:
QiDao's risk management assumes worse case scenarios when architecting loan parameters. This helps MAI remain overcollateralized even in the worst of market conditions. Check out our community-run risk management dashboard here. You can also read more about our collateral risk mitigation strategies here.