Please note that this proposal aims to add MAI as a borrow-only asset to Moonwell, meaning that the CF for MAI should be set to 0%.
General
- Token Asset Name: MAI
Description of the project and the token
MAI is a CDP stablecoin that is native to Base. It is not connected to MAI on any other chain. The only ways to mint MAI are via (1) CDP loans with cbETH, wstETH, WETH, and AERO, or (2) the peg stability module with USDC.
MAI on Base has an impeccable peg. Given it’s interest rate mechanism, any depegs can be corrected via adjusting interest rates or increasing incentives. MAI on Base can be tracked here: MAI (Base) Price: MIMATIC Live Price Chart, Market Cap & News Today | CoinGecko
Benefits to the Moonwell Community
It cannot be underestated how benefitial this integration can be for Moonwell. Being the only native CDP stablecoin on Base, MAI can provide a strong avenue for increasing liquidity on Moonwell’s deployment.
Bootstrapping the market
Integrate moonwellMAI into a new stablecoin, using Reserve Protocol (rMAI). This stablecoin will use yield earned from Moonwell to provide voting incentives on Aerodrome. In addition to this yield flywheel, QiDao will provide extra voting incentives for rMAI-MAI. This will considerably increase the available stablecoin liquidity on Moonwell.
Use cases for MAI market on Moonwell
Having MAI on Moonwell will allow users to farm MAI yield opportunities without having exposure to MAI. This can be done by borrow MAI with other stablecoins as collateral, something that cannot be done already at QiDao.
Resources (Website, Social Media Links, and docs)
MAI’s documentation is the best place to learn more about its architecture: [unable to link due to link limit]
website: https://app.mai.finance/
twitter: https://twitter.com/QiDaoProtocol
The proposal author’s contact information
Our team is already in contact with Moonwell’s team for over a year. You can contact the author at Benjamin891 on Telegram.
The relationship between the author of the new market proposal and the token
Author is a team member at QiDao Protocol.
Market Risk Assessment
- Market cap of the token: MAI on Base has a circulating supply of 3M+.
- The largest central and decentralized exchanges where the token is listed and its respective liquidity: Aerodrome
- Volatility per Gauntlet’s definition (30 days, 90 days, 1 year): L2M: 0.006564136192
- Average daily trading volume on CEX and DEX: L1M: $143,375 (upward trending)
Decentralization
- List the top 10 token holders, the percentage held by each holder:
Top holders are currently farming MAI on Aerodrome. The largest single holder currently holds 7.6% of the supply. Please see the following breakdown of MAI LPs:
- DeBank | The Real User Based Web3 Community
- https://debank.com/protocols/pool/0x2cc76ef706b2fc694f86c633b880a6dde81687f1/base/holders
- List all of the privileged roles in the token contract. This can include whitelisted EOAs, Multi-sigs, or DAOs.:
MAI minting ability by Guardian Safe for the purpose of managing debt ceilings at the CDP engine. This is similar to the model followed by DAI, MIM, DOLA, and other CDP stablecoins.
- Is the token pausable? No
- Does the token have a blacklist? No
Smart Contract Risks
Codebase & On-chain Activity
- All contracts related to QiDao Base are verified and can be seen here: [unable to link due to link limit]
- Give the age of the token in days: 1,091 days
- Provide the number of transactions in the contract to date: MAI standard contracts have over 10M cumulative transactions
Security Posture
- What audits, if any, were performed? MAI has had 2 audits: [unable to link due to link limit]
- Provide emergency contacts with their estimated response time/availability: the team is available 24/7. Both Moonwell and Guantlet have group chats with the QiDao team.
Upgradability
- Is it upgradeable? No
Oracle Assessment
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The safest way to price MAI debt is by assuming a $1 price of each MAI debt. This is a long-held standard by QiDao, MakerDAO, Liquity, Inverse, Abracabadra, Angle, and all other CDP stablecoin issuers. Since MAI is not being proposed as a collateral asset, there are no angles by which Moonwell could be manipulated if MAI debt is assumed to be $1. If, at a later time, a proposal is brought up to add MAI to Moonwell’s collateral basket, at that point an oracle should be provided.
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Please provide an analysis of the price deviation from the underlying asset; ie. over the last 180+ days, how much has the price of the token on centralized or decentralized exchanges deviated from the price of the underlying asset?
MAI has kept its peg on Base (normalized volatility of 0.0065) , as can be seen in the following CoinGecko page: MAI (Base) Price: MIMATIC Live Price Chart, Market Cap & News Today | CoinGecko
- What specific events might cause the price to “depeg” or no longer be the same as the price of the underlying asset?
MAI can depeg is currently holders sell their MAIs in a coordinated fashion. No user holds a considerable portion of the supply, reducing the risk of a sell-off. If MAI depegs below $1, then it can be arbitraged using the peg stability module. Additionally, interest rates may be increased to reduce supply and reestabilish peg. If MAI depegs above $1, then users can mint MAI 1:1 with USDC via the PSM to correct the price.
For more information about MAI’s mechanisms, please see its stablecoin economics page here: How Does it Work: Stablecoin Economics | Mai Finance