MAIPrice

(MIMATIC)

Following a significant depegging incident in late 2023 caused by an external exploit, MAI's stability has been a primary focus. The QiDao Protocol has actively addressed the accumulated bad debt through measures like burning treasury assets and adjusting debt ceilings to restore confidence and the peg. While the project continues to work on "Bad Debt Elimination," users are advised to monitor official channels for the latest updates on its recovery and sustained peg health, confirming its current reliability.

MAI experienced a major depegging in late 2023, dropping significantly, primarily due to the Multichain exploit. This incident led to substantial bad debt from collateral held on the affected bridge. To restore stability, the QiDao Protocol implemented a "Bad Debt Elimination" strategy. This involved burning treasury assets to offset the debt and carefully adjusting debt ceilings for various vaults. These actions were crucial in recovering the peg and mitigating future risks stemming from similar external vulnerabilities.

No, MAI is not an algorithmic stablecoin. There is common confusion, but the protocol explicitly states it is an overcollateralized stablecoin. This means MAI is backed by a surplus of various crypto assets, such as MATIC, ETH, and FTM, held in user-created vaults. Similar to other well-known overcollateralized stablecoin protocols, MAI's value is maintained by ensuring that the value of the underlying collateral always exceeds the amount of MAI minted, rather than relying on complex algorithms.

Users can borrow MAI at 0% continuous interest by opening a "Vault" within the QiDao Protocol. The process involves depositing approved crypto collateral, such as MATIC or ETH, into this vault. Based on the collateral's value and the specific vault's parameters, users can then mint and borrow MAI. Instead of ongoing interest, QiDao typically charges a one-time repayment fee when the borrowed MAI is returned and the vault is closed. This unique model is a key attraction for borrowers.

The QI token serves as the native governance token of the QiDao Protocol, distinct from the MAI stablecoin. Its primary role is to empower the community through decentralized governance. Holders can stake QI to participate in voting on "QIPs" (QiDao Improvement Proposals), which influence protocol parameters like supported collateral types, debt ceilings, and fee structures. Staking QI also allows participants to earn a share of the protocol's generated fees, aligning incentives with the long-term health and growth of the ecosystem.

Users can earn yield with MAI through several strategies. A popular method involves providing liquidity to MAI pairs on various decentralized exchanges or yield aggregators across different supported chains. By doing so, users can earn trading fees and often additional token rewards, contributing to the stability and liquidity of MAI. Another method is utilizing the Anchor Peg Stability Module, where users can swap other stablecoins for MAI at a 1:1 ratio, helping to maintain the peg while potentially earning small fees from these arbitrage opportunities.