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QiDao Protocol collaborates with Frax in order to add FXS as collateral for MAI, launch a FRAX-MAI stable LP on Polygon, and add MAI as collateral for FRAX.
With this partnership, FXS holders will be able to utilize their funds without having to spend them. When you mint MAI against collateral, you don’t have to pay any interest.
The QiDao and @fraxfinance teams have come together for a momentous partnership!🤝
Overview:
⚡️Add $FXS as collateral for $MAI
⚡️Add $MAI as collateral for $FRAX on @0xPolygon
⚡️Start $FRAX – $MAI LPFrom QiDao: https://t.co/1t3X1V9Cw7
From Frax: https://t.co/zMEKWuYJdI pic.twitter.com/FNN9PLY4oL— Qi Dao (@QiDaoProtocol) January 5, 2022
With approving FXS as collateral on Polygon, it would be also approved on all chains where MAI can be minted. Such as:
- Polygon
- Fantom
- Avalanche
- Moonriver
- Harmony
Frax will mint two million MAI at a safe LTV ratio (50%). Also, it will create an LP with the minted MAI and FRAX. Frax will secure incentives from the DEX they deploy the LP on to maximize volume and TVL.
About QiDao Protocol
QiDao is the collateral debt position (CDP) stablecoin system that powers MAI. MAI is backed by a diverse portfolio of assets, ranging from stable to volatile. Tokens with the most collateral for MAI are:
- WETH – 23 percent
- MATIC – 19 percent
- WBTC – 15 percent
QiDao allows you to keep your cryptocurrency while still being able to spend its value. That means you can borrow stablecoins without selling your crypto assets, and you can do so at 0% interest. At the time of writing, there is no USDC backing MAI. MAI is now available on five chains and can be bridged to 12 chains, with a TVL of $150 million.
About Frax Finance
The Frax protocol is a two-token system. It includes the Frax (FRAX) stablecoin and the Frax Shares governance token (FXS). Frax is the first fractional algorithm-based stablecoin system. It is completely on-chain, open-source, and permissionless.
The Frax protocol aims to replace fixed-supply digital assets like Bitcoin with highly scalable, decentralized, algorithmic money. It is the only stablecoin that has both collateralized and algorithmic supply. The ratio of collateralized to algorithmic is determined by the FRAX stablecoin’s market price. The procedure reduces the collateral ratio if FRAX trades over $1. When FRAX trades for less than $1, the protocol raises the collateral ratio.