QiDao Fundamentals Review: August (Week 65 to 68)

Summary Metrics

Revenue

Week-to-week revenue

Repayment revenue breakdown

Treasury breakdown

Notable Cash flows

Sources

1. Repayment fees

Repayment fees remained generally stable in August compared to July. Notable changes include a rise in repayment fees on Arbitrum and a decrease in repayment fees on Polygon. Vaults with BTC and DAI contributed most to repayment fees for August.

2. Deposit fees

Deposit fees increased by around 10% month over month. This increase could be attributed to lower market APRs for MAI, as more users become comfortable with MAI as a stablecoin and more farmers switch to stablecoin pools.

3. Grants

Metis has allocated $200,000 in incentives for borrowing MAI on Metis. These rewards have already gone live.

Uses

1. Distribution to eQI stakers

• 50% of repayment fee revenue
• 50% of interest fee revenue
• All rewards collected by the DAO from farming QI-MATIC
• Participation in proven liquidity mining programs

Grant executions

1. Optimism: the DAO continues to bribe VELO holders for MAI liquidity incentives. MAI-USDC is now the most bribed pool on Velodrome.

• Both Liquity and Angle are using bribes collected from QiDao to bribe for the same pools.

1. Metis: borrow incentives in $METIS have already gone live.

Other treasury-related notes

• The DAO will bridge $800,000 in stablecoins to seed liquidity for MAI on Balancer Ethereum. This liquidity will also be used to farm for BAL and AURA tokens.
• Retained repayment revenue may be sold for target tokens. Discussions around what tokens to buy are happening on the Discord.
• The DAO will begin staking its BIFI to earn interest. Additionally, QiDao will begin reflection votes for Beefy governance votes. This could attract more bribes to QI holders since QiDao would be the largest voter.

Developments related to QiDao performance

• New vaults on Optimism: mooAaveETH, mooAaveBTC, and mooAaveDAI
• Ethereum deployment: in partnership with Yearn and Stake DAO
• OP borrow incentives
• $MAI listed on Aave V3 Polygon and Avalanche

Please note that all risk analyses and liquidity tracking are posted regularly at https://riskmanagement.qidao.community/.