QiDao Fundamentals Review: Week 34 (12/20–12/26/2021)

Note: all figures as of Sunday (12/26).

Week Highlights

  • 11,865 addresses holding Qi
  • Retained earnings at $6.7M
  • 16,991,162 Qi staked (50% of circulating supply)
  • 1.8M Qi were locked this past week

Table of contents

  1. Summary Metrics
  2. Total Value Locked Breakdown
  3. Liquidity Tracker
  4. Qi Staking Overview
  5. Revenue Breakdown
  6. Prices Update

Summary Metrics

Total Value Locked Breakdown

Total value locked for the QiDao Protocol encompasses collateral tokens used to mint MAI as well as Aave market tokens being compounded on the Yield page.

Non-USDC TVL based on 5-week average prices

TVL based on 5-week average prices

TVL based on weekly prices

Liquidity Tracker

  • QuickSwap: MAI-USDC, MAI-DAI, MAI-USDT, QI-ETH, QI-MATIC, MAI-MATIC
  • Balancer: MAI-DAI-USDC-USDT, QI-BAL
  • Solarbeam: MAI-MOVR
  • SpookySwap: MAI-USDC
  • Beethoven: MAI-DAI-USDC, MAI-USDC, QI-FTM
  • Crodex: MAI-CRO, MAI-USDC
  • Saber: MAI-USDC
  • Impermax: MAI lending
  • Market.xyz: MAI lending
  • Trader Joe: MAI-AVAX, QI-WAVAX
  • Curve: MAI-av3CRV
  • Otterclam: MAI, MAI-CLAM
  • ViperSwap: MAI-ONE, MAI-VIPER
  • Qi staking

Qi Staking (eQi) Overview

When you stake Qi you will receive eQi (escrow Qi). eQi is calculated based on the amount of Qi a user locks up and the duration they choose to lock it for. Locking Qi will increase your Qi Powah (voting power) by the amount of eQi you gain. It will also enable you to receive part of the protocol’s revenue. Below are the revenue streams Qi stakers receive:

  • 100% gains from farming deposit fee revenue
  • 30% of repayment fee revenue
  • 30% of Anchor/Swap fee revenue

Requirement to receive revenue distributions: Qi must be staked for at least a week on Sunday before the snapshot block. You can find the snapshot block on the boost page. That means that on Sunday (at the snapshot block), your Qi must be locked for a period longer than a week.

You can stake Qi at https://app.mai.finance/boost

Qi circulating supply decreased by 4.97% since last week. This was due to Qi being returned to the main multisig from a working capital account owned by the protocol. The account was not included in the circulating supply formula, making it appear as circulating supply. However, it was not circulating. The reduction in circulating supply is hence solely a result of an accounting adjustment.

Revenue Breakdown

1. Repayment Fee Revenue

Users pay a repayment fee equal to 0.5% of their debt when repaying their stablecoin debt to unlock the underlying collateral. This fee is denominated in the collateral token.

Example: A user has 100 USD worth of Matic and 50 MAI (miMatic) in debt. They then repay 10 MAI. The fee paid by the user would be 0.05 USD worth of Matic (10 MAI * 0.5% fee).

Below is a breakdown of what tokens made up this week’s repayment fees:

2. Deposit Fee Revenue

Deposit fees are paid by users when they submit their liquidity pool (LP) tokens to participate in liquidity mining rewards. The fee is denominated in LP tokens and is equal to 0.5% of the LP token value.

Example: A user that provided 100 USD in liquidity will pay a 0.5 USD fee (100 USD * 0.5% fee) when depositing their LP tokens on the MAI rewards page.

The protocol uses accumulated deposit fee revenue (from all liquidity pools) to farm QI-WMATIC on QuickSwap. All gains are distributed to Qi stakers on Wednesdays.

3. Anchor Revenue

There’s a 1% fee when minting MAI with stablecoins or redeeming stablecoins from MAI through Anchor. As a result, the price to mint 1 MAI is 1.01 accepted stablecoin and 1 accepted stablecoin can redeem 0.99 MAI.

Example: A uses 100 USDC to mint MAI on Anchor. The user will receive 99 MAI (100 MAI — 100 * 1% fee).

Note: with the use of interest-bearing stablecoins as a means to keep MAI’s price from going above $1 over the use of Anchor, USDC reserves will likely remain close to 0.

Prices Update

Get Involved!

Join the discussion at https://discord.gg/! We have lively investment and price-talk channels for all degens and Qimps alike.

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