Proposal to add MAI/LUSD to the Gauge Controller

Gauge Proposals
#1

Gauge Proposal Template:

Summary:

Proposal to add MAI+LUSD on Ethereum to the Gauge Controller to enable users to assign gauge weight and mint CRV.

References/Useful links:

Link to:

• Website: https://www.mai.finance/

• Documentation: https://docs.mai.finance/

• Github Page: 0xlaozi (LaoZi) · GitHub

• Communities: Discord

• Defillama: QiDao: TVL and stats - DefiLlama

Protocol Description:

QiDao is a decentralized stablecoin protocol. It functions on an over-collateralized debt position model. The protocol launched MAI, which is soft-pegged to the dollar. It has around $82M in TVL, with minting available on Polygon, Optimism, Avalanche, Metis, Arbitrum, Fantom, Moonbeam, Moonriver, BNB Chain, and Gnosis Chain. MAI is the best value transfer token between chains, being liquid on over 20 chains via Multichain, cBridge, and Allbridge.

MAI is backed by a basket of over 60 assets, ranging from interest-bearing tokens like Aave market tokens to regular ERC20 tokens like CRV and FTM. MAI is not backed by any centralized assets like USDC. All collaterals are priced with Chainlink oracles. New collaterals are onboarded through governance and risk management procedures described here.

Our DAO has allocated rewards to Curve pools on Polygon, Optimism, Avalanche, Fantom, and recently Arbitrum

Motivation:

Curve is the natural first step for MAI on Ethereum. Adding a pool for MAI will allow us to deploy lending on Ethereum. It would also provide low slippage transactions for those bridging in and out of Ethereum from over 20 chains.

MAI is by far the largest use case for CRV on Polygon, holding over 57% of the total supply there. CRV can be used as collateral to mint MAI at 0% interest. CRV holders are then continually rewarded with Qi tokens for minting MAI against CRV.

MAI is a generally accepted stablecoin, having partnered with or being used in most large DeFi projects. Some of these projects include Aave, MakerDAO, Uniswap, Multichain, Lido, Balancer, Curve, Frax, and Beefy.

Specifications:

You can view analytics for MAI on Defillama. To learn more about the protocol, please visit our official docs and our community-run guide.

Minting MAI is available at the Mai Finance frontend .

  1. Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.

MAI is minted by the QiDao Protocol, which is controlled by QI holders through governance. A detailed description of our governance process may be found here .

  1. Oracles: Does the protocol rely on external oracles? If so, provide details about the oracles and their implementation in the protocol.

    The protocol relies on Chainlink oracles for pricing of collateral assets.

  2. Audits: Provide links to audit reports and any relevant details about security practices.

QiDao has been audited twice. Audits can be found here.

All assets are constantly monitored by community contributors for both risk grading, onchain liquidity, slippage, liquidity centralization, and bridge risks. Find our community risk dashboard here: https://riskmanagement.qidao.community/

  1. Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.

The protocol runs on decentralized systems such as competitive liquidations, and vote-based collateral onboarding. No single person has admin controls over the protocol. The treasury and some part of the protocol are secured by a multisig of doxxed team members.

  1. Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Curve pool: how long has it been active, TVL, historical volume?

MAI has remained stable over the last 12 months, despite adverse market conditions. MAI has held Curve pools for several months, for most of which it has provided a considerable share of volume on Polygon and Fantom.

The pool in question on this proposal was created recently with the aim of launching QiDao on Ethereum.

3 Likes
#2

Strongly support this proposal. We are lacking pools and liquidity for stable coins fully decentralised with nothing to do with any custodial stable coins in this space.

2 Likes
#4

Why does QiDao want this gauge? You just passed a gauge vote for a pair with FraxBP. This pool has $20 in it (your FraxBP pool has even less). The pool was created less than 2 days ago. And paired with LUSD? Why LUSD, what purpose does that serve?

Generally, we try to have standards about pools that qualify for gauges. The pool should have decent liquidity and a track record showing it is viable in the absence of CRV emissions. That has changed recently, and I suspect it’s because DAO members are becoming desperate in the bear market, and are lowering their standards if they think it will increase their bribe revenue. This is ultimately a value extractive mentality that is hindering Curve. We have to be more careful than ever about how gauge emissions are directed because we all fundamentally depend on Curve’s bottom line: we need volume and we need to be increasing our marketshare on DEX trading. Is MAI/LUSD helping us do that?

2 Likes