The Tetuans have their defenses ready to claim their space in QiDAO’s territory.
Tetu is an asset management protocol aimed to provide the highest yields possible for investors. Back in December 2021, Tetu provided the Polygon community with the innovative AAVE-MAI-Balancer Strategy (“AMB”). This “multi-strategy” automatically interconnects three protocols for the best yield farming techniques possible, earning rewards in AAVE, QiDao and Balancer. All a user needs to do is deposit a single asset token into Tetu, such as MATIC, WBTC, WETH, or AAVE and the strategy automatically does all the other work.
The strategy works as follows:
- Tokens are supplied to AAVE and amTokens are received
- amTokens are deposited on QiDao to create camTokens
- Supply all camTokens as collateral in a QiDao camTokens vault
- Borrow MAI by about 50% of the collateral value
- Deposit the borrowed MAI in the BAL stability pool
In comes Vault Incentives:
Following QIP047, a total of 0.65 Qi per block (around 187k Qi per week) has been approved for distribution to vaults across all chains. By locking Qi for eQi (escrowed Qi), holders can receive boosted rewards and the ability to vote for the allocation of rewards to various collateral types. This allows for eQi holders to move incentives for borrowing to the specific vaults of their choice.
However, since the introduction of voting, rewards have moved out of 3 of the 4 AMB vaults, namely AAVE, wETH, and wBTC, as users have been voting for mooVAULTS on Fantom instead.
Tetu decided to answer by entering the Qi Wars. We created a liquid form of eQi called tetuQi, to help win the Qi wars through boosting the returns of the “AMB” vaults. Users can stake their Qi in return for tetuQi, meaning there is always a 1:1 ratio backing. Additionally, Tetu created a tetuQi-Qi LP pool on TetuSwap, which is incentivized by TETU tokens. This creates further liquidity and allows for a zero impermanent loss LP opportunity.
tetuQi holders are still able to earn weekly rewards, while enjoying the freedom of having liquid eQi. In the same vein that caused many CRV holders to stake for cvxCRV, these incentives will encourage many users to swap their Qi for eQi.
Tetu can get a greater share of the vault rewards directed to the AMB vaults as their voting power increases, causing new users to deposit into the vaults and increasing the TVL. This is a win-win for both QiDao and Tetu as more Qi is locked out of circulation while the tetuQi holders benefit from getting exposure to liquid eQi.
Tetu would be able to increase the rewards on the AMB vaults or any future vaults built on Qidao, which paired with increased TVL as a result, will lead to increased profit share for dxTETU holders. Additionally, dxTETU will act as a proxy for eQi, given that Tetu’s voting decisions depend upon dxTETU voters,
Having the first mover advantage, Tetu looks to have a big advantage in the Qi Wars. Using the Curve Wars as a case study, Convex was able to gain a majority control over the gauge weights voting by offering a liquid version of CRV. Now, it seems impossible for competitors to replicate the immense success of Convex, only leaving room for protocols to build on top of Convex, like Redacted Cartel. If Tetu can create enough demand for tetuQi, we will have real potential for being THE main power in the Qi Wars, leading to a synergistic outcome for both Qi holders and Tetu alike.
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