In the full Defi ecosystem, the array of lending & borrowing is an integral part. Polygon with the ambition to build a Defi ecosystem on layer 2 is the same. In this article, I will introduce to you a prominent lending project on Polygon , QiDAO. This article will help you understand what QiDAO is? What is QI token?
What is QiDAO?
By over-collateralizing Crypto assets, QiDAO allows users to borrow Stable coin miMATIC (MAI)
QiDAO is a decentralized, community-run, community-managed protocol. Changes are made through proposals and voted on by QI governance token holders.
What is MAI (miMATIC)?
Currently QiDAO only supports MATIC asset type, in the future QiDAO will support more different asset types. New types of collateral will be decided through QI Holder community vote
MAI is a collateral-backed stablecoin and can only be minted with this collateral. MAI is created when users deposit tokens accepted 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 priced at 1 USD.
QiDAO function
User side
Leverage: You can sell your MAI to buy more tokens that you have collateralized, or use MAI for other purposes to make a profit depending on your strategy.
Interest-free Loan: Borrow stablecoins against your collateral at 0% interest.
No scheduled payments: You won’t need to commit to monthly payments or deadlines; you can repay at any time convenient for you and your needs.
MAI as collateral: Lending protocols require stablecoins to borrow tokens. You can use MAI as stablecoin collateral in those platforms
With another project
Stable pricing structure: By pricing in stablecoins, projects can reduce the risk of fluctuations in revenue.
Currently the only information we have is that the project sells their tokens to some investors, but to whom and at what price the team has not disclosed.
According to the project founder, the money collected is mainly to cover the cost of audit and team activities.
Token Release Schedule
Investor: Locked 18 months, unlock ⅓ every 6 months.
Team: Vested for more than 3 years.
Community Distribution: Through liquidity mining and staking programs.
Token Use Case
Governance: Staking QI tokens to be able to participate in on-chain voting and propose proposals. Some managed content includes: Treasury vault, Oracle, Vaults risk parameters, etc.
Liquidity Mining reward: QI tokens are used to reward liquidity mining and staking programs.
In this article, I introduced you to basic information about QiDAO, although it is also a prominent project on Polygon, but QiDAO is not too prominent compared to other projects already on the market, But with the foundation of the Polygon system with good infrastructure, the Defi market is increasingly focused on development in the future, which may have many promises for QiDAO.
DISCLAIMER: The article is for informational purposes only, does not recommend investing, buying/selling any financial assets. The cryptocurrency market is a market that contains a lot of risks, and is not protected by the state. Please manage risks carefully when participating in the market. Cryptochill wish you good luck!
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