QiDao Fundamentals Review: Week 16 (8/16/21–8/22/21)

Week Highlights

• Repayment fee revenue increased by 97.02%
• Earned $82,542 in protocol revenue for week 15
• 5,966 addresses holding Qi (2.5% week-to-week increase)
• 4,044,254 Qi staked (19%)

Table of contents

1. Summary Metrics
2. Borrowing Comparables Table
3. Total Value Locked Breakdown
4. Liquidity Tracker
5. Qi Staking Overview
6. Revenue Breakdown
7. Prices Update

Summary Metrics

Borrowing Comparables Table

The table below compares the net cost of borrowing stablecoins (USDC or MAI) against the value of the following tokens. Net cost of borrowing is the borrow APY, adjusted for deposit and borrow incentives. A negative borrow rate means that users receive more interest than they pay when borrowing stablecoins (users make a gain from borrowing).

Note that Qi Dao has not yet started borrow incentives. When Qi Dao begins borrow incentives, the net gain of borrowing on Qi Dao will increase.

Total Value Locked Breakdown

Total value locked for the QiDao Protocol encompasses collateral tokens used to mint MAI as well as Aave market tokens being compounded on the Yield page.

Below is a breakdown of the protocol’s total value locked:

Liquidity Tracker

Qi Staking (eQi) Overview

When you stake Qi you will receive eQi (escrow Qi). eQi is calculated based on the amount of Qi a user locks up and the duration they choose to lock it for. Locking Qi will increase your Qi Powah (voting power) by the amount of eQi you gain. It will also enable you to receive part of the protocol’s revenue. Below are the revenue streams Qi stakers receive:

• 100% gains from farming deposit fee revenue ($2,591,925 used to farm as of week 14)
• 30% of repayment fee revenue ($21,899 average weekly revenue)
• 30% of Anchor/Swap fee revenue ($183,355 average weekly revenue)

Requirement to receive revenue distributions: Qi must be staked for at least a week on Sunday before the snapshot block. You can find the snapshot block on the boost page. That means that on Sunday (at the snapshot block), your Qi must be locked for a period longer than a week.

You can stake Qi at https://app.mai.finance/boost

Revenue Breakdown

Note: retained earnings = accumulated revenue — distributed revenue

1. Repayment Fee Revenue

Users pay a repayment fee equal to 0.5% of their debt when repaying their stablecoin debt to unlock the underlying collateral. This fee is denominated in the collateral token.

Example: A user has 100 USD worth of Matic and 50 MAI (miMatic) in debt. They then repay 10 MAI. The fee paid by the user would be 0.05 USD worth of Matic (10 MAI * 0.5% fee).

Below is a breakdown of what tokens made up this week’s repayment fees:

Note: accumulated revenue value is affected by fluctuations in token prices.

2. Deposit Fee Revenue

Deposit fees are paid by users when they submit their liquidity pool (LP) tokens to participate in liquidity mining rewards. The fee is denominated in LP tokens and is equal to 0.5% of the LP token value.

Example: A user that provided 100 USD in liquidity will pay a 0.5 USD fee (100 USD * 0.5% fee) when depositing their LP tokens on the MAI rewards page.

The protocol uses accumulated deposit fee revenue (from all liquidity pools) to farm QI-MAI on QuickSwap. All gains are distributed to Qi stakers on Wednesdays.

3. Anchor Revenue

There’s a 1% fee when minting MAI with stablecoins or redeeming stablecoins from MAI through Anchor. As a result, the price to mint 1 MAI is 1.01 accepted stablecoin and 1 accepted stablecoin can redeem 0.99 MAI.

Example: A uses 100 USDC to mint MAI on Anchor. The user will receive 99 MAI (100 MAI — 100 * 1% fee).

Prices Update

Get involved!

Join the discussion at https://discord.gg/! We have lively investment and price-talk channels for all degens and Qimps alike.