TL;DR: The QiDao Protocol will now accept USDC as collateral to mint miMatic in addition to Matic.
What is miMatic?
miMatic is the first Polygon-native stablecoin, and it’s backed by Matic. Anyone can mint miMatic by depositing Matic into a vault and borrowing on the value of that Matic. Users have to maintain the collateral value of their value at 150% of the value of their miMatic. This ensures that there is always enough Matic to back the value of miMatic.
Improving the Peg
Following recent market volatility and a drop in Matic’s price, the price of miMatic has trended above the peg of 1 USD. The fall in Matic’s price lowered collateral values across vaults. This, along with users wanting to exit their Matic positions, prompted users to buy miMatic to repay their vault debt. Such an increase in demand drove the price of miMatic upward.
To account for times of market volatility and to lower the risk of liquidation, the Protocol will now allow users to mint miMatic using USDC. Users will be able to swap USDC for miMatic through the app site. miMatic vaults will still accept Matic as collateral, which allows users to enjoy the value of their Matic without having to sell it.
How can I mint miMatic?
You have two options: using Matic or USDC. If you’re a Polygon believer and want to hodl Matic to the moon, you can lock your Matic tokens into a vault and borrow up to ⅔ of its value to mint miMatic at 0% interest. This allows you to use your Matic without selling it. We leave some room in the vault for price fluctuations, so there is always value to back miMatic tokens. Check out our tutorial here on minting miMatic from Matic. If you’re holding stablecoins or don’t want to open up a vault, you can swap USDC directly on our swap page for miMatic.
If you have any questions, reach out to us on the help desk at https://discord.gg/KFj4cVfbQu.