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MAI is a USD-pegged stablecoin backed by collateral available on many chains.

MAI is a stablecoin backed by collateral, and can only be minted with this collateral backing it. MAI is created when users deposit accepted tokens (currently MATIC) as collateral in vaults and in turn receive a loan against that collateral. Users can also mint MAI through Anchor where MAI is minted in exchange for accepted stablecoins. MAI is soft pegged to the USD, meaning that 1 MAI is around 1 USD.

What is the difference between QiDao and other stablecoin protocols?

QiDao is an overcollateralized stablecoin protocol; it is not an algorithmic stablecoin. They took inspiration from different stablecoin protocols as well as their community to help build the superior protocol they have today, combining the best of both worlds.


Though there are some similarities, some of the key differences include that QIDAO do not charge interest on loans, they accept a diversity of collateral types (i.e. interest bearing assets), and MAI can be minted on many chains. This substantially reduces the transaction times (under 15 seconds versus around 8 minutes) and fees (less than 1 cent versus $15 or more). Being built across multiple chains, QiDao enables users to make more transactions and interact with the protocol without thinking twice about gas fees.

How is the peg maintained?

Interest Bearing Stable Collateral Vaults:

  • When the MAI peg is over $1, we will increase the debt ceilings for our ib stable vaults. Due to the low risk and high LTV ratio of stable collaterals, stable vaults are very attractive for high leveraging and their vaults are quickly depleted. This leveraging applies a lot of sell pressure on MAI helping bring the peg back down to $1.


  • When the price of MAI falls below $0.99 or rises above $1.01, users can engage in risk-free arbitrage through Anchor.

Liquidation Ratio:

  • The liquidation ratio (minimum collateral to debt ratio) ensures that every MAI is always backed by the collateral value in our vaults. When our vaults fall below the liquidation ratio, they can be partially liquidated. This means that some of the vault's debt is repaid by a liquidator, and in return the liquidator will receive some of the vault's collateral. The initial liquidation ratio will be set at 150%, which is subject to change by community proposals/voting. to read more about the liquidation process.

Collateral Token Fluctuations:

  • Our vaults are overcollateralized (by 130-150%, depending on the asset) to ensure that there is always collateral value to back the stablecoins minted. As the value of the collateral rises, more stablecoins can be issued as a rise in collateral price will increase your collateral to debt ratio. Conversely, as the value of the collateral falls, fewer stablecoins can be issued. This is implemented to maintain the minimum collateral to debt ratio of each vault type.

The effect of collateral price changes on the QiDao protocol are summarized below:

  • If collateral market price falls, the collateral to debt ratio will decrease, prompting users to either deposit more collateral or repay their MAI debt
  • If collateral market price increases, the collateral to debt ratio will increase, allowing users to either borrow more MAI or withdraw some of their collateral