The integration with QiDAO allows users to now write options and provide liquidity with MAI on Polygon
TL;DR
We are excited to announce that we have unlocked a new stablecoin inside the Pods protocol: MAI from QiDAO! 🎉 This integration makes it possible for users to sell options and provide liquidity with it when on Polygon.
The first put option series using MAI as collateral will be MATIC:MAI expiring on December 10th with a strike of $1.5.
Accepting new types of collateral for put options
Accepting new types of underlying (volatile) and strike (stable) assets is very beneficial for the community in terms of opening new markets and increasing the TVL of the protocol.
When it comes to allowing new types of stablecoins as collateral, it is important to guarantee that the asset will maintain its peg to 1 USD as the pricing of put options at Pods protocol currently happens in USD terms.
About QiDAO's MAI
QiDAO Protocol is a self-sustaining, community-governed (with Qi tokens), non-custodial and decentralized stablecoin protocol on Polygon.
The protocol's logic relies on the creation of overcollateralized vaults, where the user's crypto assets are deposited and therefore is able to borrow MAI, QiDAO's stablecoin, against the collateral's value at 0% interest.
This means that the user is able to borrow MAI and spend its value without having to sell their tokens, allowing the user to still have the exposure and realize possible gains on the tokens locked in as collateral.
MAI is able to keep its peg to $1 USD through the following mechanisms:
- Risk-free arbitrage through Anchor: in case the price of MAI gets below $0.99 or above $1.01.
- Liquidation ratio: where debt is paid by the liquidator in case every MAI is no longer backed by the collateral value necessary.
- Collateral Token Fluctuations: by always respecting the minimum collateral to debt ratio of each vault type, the amount of MAI tokens available in the market fluctuates according to the changes in the value of the collateral.
If collateral value increases -> Collateral/Debt ratio increases:
- Users can borrow more MAI
- OR withdraw some of their collateral
If Collateral value decreases -> Collateral/Debt ratio decreases:
- MAI is now backed close to the minimum Collateral/Debt ratio
- There can be the risk the vault gets liquidated
- Users can deposit more collateral
- OR repay debt, reducing the supply of MAI in the market
How to get MAI
There are 2 possible ways for users to have access to MAI:
- Creating a vault and locking in collateral. You can find a complete guide in this blogpost:
2. Swapping tokens for MAI in any DEX like Quickswap, Slingshot, Dexguru, Sushiswap, etc.
Using MAI at Pods
Users can use MAI at Pods to either sell options or to provide as liquidity.
About QiDAO
QiDao is Polygon’s first native stablecoin protocol. It is self-sustaining, community-governed, and decentralized. Loans are secured by always having more value locked than the amount of debt given out. Loans are paid out and repaid in MAI (a stablecoin soft pegged to the USD).
Join the QiDAO community
app | website | documentation | blog | twitter | telegram | discord
About Pods
Pods is a decentralized non-custodial options protocol. Users can create options and trade them through an Options AMM on the Ethereum Blockchain. Pods is the easiest way to hedge crypto in DeFi.
We invite you to take the first step in your new mission: start testing the app on app.pods.finance
Join the Pods community
app | website | documentation | blog | twitter | youtube | telegram | discord
