QiDao provides $1M MAI of liquidity in on the Market’s Jarvis Forex pool
Following the launch of our Jarvis Forex pool on Market, we are excited to announce that QiDao has approved seeding the pool with $1M MAI, QiDao’s stablecoin pegged to the US Dollar. It allows users to lever their jFIATs and jFIATs-related Beefy’s yield-bearing!
QiDao
QiDao is the issuer of the MAI, the largest synthetic CDP-based USD stablecoin on Polygon, with 79M of MAI in circulation. QiDao is also issuing MAI on other EVM-based chains like Avalanche or Fantom,
QiDao allows users to deposit various types of collateral, including yield-bearing to self-mint MAI against them.
Holding the peg!
To maintain MAI’s peg to the US Dollar, in addition to incentivize liquidity pools pairing MAI with other USD stablecoin, QiDao has two mechanisms:
- Loan: if MAI is trading below the peg, users who borrowed MAI from the protocol can buy back MAI at a discount from exchanges and repay their debt with at 1 MAI = 1 USD; if MAI is trading above the peg, users can borrow MAI at 1 USD and sell MAI on exchanges.
- Anchor: Anchor allows users to use USDC, USDT, and DAI to mint new MAI, and to burn MAI to redeem these stablecoins. When MAI is off the peg, users can use Anchor to perform arbitrages.
Direct Deposit Module (DDM)
QiDao’s DDM allows minting uncollateralized MAI and depositing them directly into the money market, like Market. Users can then borrow these MAI by depositing collateral, therefore, MAI exiting the money market are all over-collateralized.
Jarvis Forex pool with MAI
QiDao used their DDM to mint 1M MAI and deposit them in the Jarvis Forex pool on Market.
Users can now borrow MAI by depositing jFIATs, or Jarvis-related Beefy vault tokens such as the moo2cad, moo2jpy, and mooJRT-ETH one.
Borrowing MAI has multiple use cases:
- Forex leverage: users can increase their exposure to a jFIAT, by depositing the said jFIAT as collateral, borrowing MAI, and swapping MAI for USDC and then USDC for the same jFIAT.
- Forex yield looping: like the use case above, users can increase their exposure to both a currency and a Jarvis yield program, by depositing moo2cad or moo2jpy as collateral, borrowing MAI, and reinvesting them into the 2cad or 2jpy programs.
- Diversifying yield: users can also borrow MAI to use the latter in yield farming programs using MAI.
QiDao can mint new MAI if the demand grows, and deposit them into the pool to maintain the interest rates low.
About Jarvis Network
Jarvis Network is a set of protocols and applications on EVM-compatible chains to bridge legacy and decentralized finance (DeFi). Its mission is to build an infrastructure layer that can be leveraged by anyone to develop use cases facilitating the adoption of DeFi, and to build applications to onboard the next billions of users. Its first protocol, Synthereum, pioneers an innovative and capital-efficient manner to issue and exchange synthetic fiat currencies called jFIATs, thanks to a fully on-chain Forex market. jFIATs are stablecoins designed to be usable: they keep their peg, are highly liquid, and are scalable.
⛔ Risk Warning: Investing in digital financial assets involves a high degree of risk and volatility and is not suitable for all investors; do not risk more money than you can afford to lose. Please consult an independent professional financial or legal advisor to make sure the product is right for you.
⛔ Disclaimer: This article contains text, data, graphics, photographs, illustrations, and information (“Information”) connected with Jarvis International and/or other entities part of the Jarvis group ( “Jarvis”). Jarvis attempts to ensure Information is accurate, however, information is provided “AS IS” and on an “AS AVAILABLE” basis and may not be accurate or up to date. The publication of this article does not represent solicitation by Jarvis of buying the token “Jarvis Reward Token” and is not to be considered as a recommendation by Jarvis as to the suitability of any investment, if any, herein described. No action should be taken or omitted to be taken in reliance upon the information in this document. Jarvis accepts no liability for the results of any action taken on the basis of the Information.
