QiDao Protocol (Mai Finance)

QiDao (Mai Finance) is an overcollateralized stablecoin protocol that lets users mint MAI (a USD-pegged stablecoin) by depositing crypto assets into non-custodial vaults, without selling their holdings. MAI is native to each supported chain (Ethereum, Polygon, Base, Avalanche, and others) — minted directly on the chain where collateral is deposited, eliminating bridge risk. The protocol is community-governed via the Qi token and offers loans with no traditional interest, relying instead on a repayment fee model.

QiDao (Mai Finance) generates yield for users through several built-in mechanisms. Here's how each one works.

Vault fees. When you repay a loan (MAI you minted), you pay a 0.5% repayment fee in the collateral you deposited. There's traditionally no interest on the MAI itself. However, the protocol's community (the DAO) can also add:

• Performance fees on yield earned by interest-bearing collateral (like receipt tokens from Yearn, Beefy, or Aave). These fees adjust weekly based on the average yield of the vault's collateral over the previous seven days.
• Opening fees, charged when a vault is created.

Peg Stability Module (PSM). This module accepts approved stablecoins (such as USDC or DAI) and lets you mint or redeem MAI at a fixed 1:1 rate. The deposited stablecoins are automatically put into pre-approved yield strategies:

• USDC is supplied to Compound to earn lending interest.
• DAI is entered into MakerDAO's Dai Savings Rate (DSR). The returns from these strategies flow to the protocol as revenue.

Liquidation bonuses. If a vault becomes undercollateralized, liquidators can step in to repay the debt. In return, they receive a bonus in collateral tokens:

• 10% bonus for volatile collateral
• 5% bonus for stable collateral This creates an arbitrage opportunity for participants who monitor the system actively.

aveQI (advanced voting escrowed QI). Protocol revenue from all chains is collected weekly on Optimism. Every two weeks, 50% of the accumulated revenue is used to incentivize the QI-ETH Balancer pool through voting markets. Users who lock QI-ETH LP tokens (for a minimum of 28 days and up to 4 years) receive boosted voting power and a proportional share of weekly revenue distributions. If the return on these voting-market incentives falls below 1x, the revenue is distributed directly to aveQI lockers instead.

MAI liquidity pools. MAI holders can earn yield through partner automated market makers (AMMs). Protocol revenue is channeled to incentivize these pools, supporting demand for MAI and helping maintain its peg. The docs note that staked MAI is often replaced with LP incentives for better capital efficiency.