As a leading stablecoin protocol in the DeFi space, QiDao has recently teamed up with Frax, to boost liquidity for its stablecoin, MAI, on the decentralized exchange Thena. This partnership is aimed at reducing liquidity costs and expanding available liquidity for both protocols.
Thena is a decentralized exchange that runs on the BNB Chain, which has seen a surge in popularity since its launch earlier this year. To acknowledge the contributions of QiDao and Frax, Thena has awarded them with a veNFT.
By leveraging the protocol’s veNFT voting power and collaborating with Frax, QiDao is looking forward to incentivizing more liquidity providers looking for good stablecoin yields to participate in the FRAX-MAI liquidity pool on Thena. To further attract emissions to the pool, both Frax and QiDao will be co-bribing the pair, boosting the APRs for veTHE voters and the ecosystem. As a result, the protocol aims to foster a deeper market for MAI on BNB Chain.
This collaboration between QiDao and Frax is mutually beneficial for both protocols. By working together, they can attract more liquidity providers, which will increase the liquidity depth for both FRAX and MAI stablecoins, thereby lowering slippage and improving market efficiency. This, in turn, will also attract more traders to the Thena DEX, which will boost its trading volume and overall lower the cost of liquidity.
Reducing liquidity costs is a critical factor for growth and sustainability of DeFi protocols, and this partnership with Frax is a good example of how decentralized protocols can leverage each other’s strengths to find synergies that benefit both protocols and the community as a whole.
How can users benefit from this partnership?
- As a liquidity provider: Supplying MAI and FRAX into the LP, users can earn a boosted yield in the form of THE. Start here: https://thena.fi/liquidity/manage/0x49ad051F4263517BD7204f75123b7C11aF9Fd31C
- As a voter: Users holding veTHE (locked THE) can vote for the MAI/FRAX STABLE pool and get a share of the weekly bribes allocated to them in the form of $QI and $FXS. Start here: https://thena.fi/vote