👻Aave: Add MAI (AKA miMatic) to Aave V3 on Polygon, Fantom, and Avalanche

Proposal: https://snapshot.org/#/aave.eth/proposal/0x751b8fd1c77677643e419d327bdf749c29ccf0a0269e58ed2af0013843376051

Governance Forum Discussion:

https://governance.aave.com/t/add-mai-on-aave-v3/7630

Expires: <t:1648823400>

Summary:

This Snapshot proposal is for the listing of MAI on Aave V3 on Polygon, Fantom, and Avalanche.

About MAI and QiDAO

Mai is an overcollateralized CDP (Collateralized Debt Position) stablecoin currently available for minting on 8 different chains. Mai finance’s platform allows users to lock cryptocurrency’s in a vault and use them as collateral in order to mint the stablecoin $MAI.

MAI is the first and largest stablecoin project on Polygon and Fantom. It is an overcollateralized stablecoin that is non-custodial. All MAI is backed by collateral locked in user-managed vaults. MAI minting is available on 8 chains, and bridging to 18 chains. All accepted collaterals are priced using Chainlink price feeds. MAI has stayed within its peg through several market downturns. There’s around 250M MAI minted, with liquidity on all top DEXs in which MAI is present. A significant portion of liquidity for MAI is on Curve. MAI hosts the largest pool on Curve Polygon and the pool with most volume on Curve Fantom. (https://governance.aave.com/t/add-mai-on-aave-v3/7630#summary-1)

MAI is an overcollateralized CDP stablecoin on Polygon, Avalanche, Fantom, Arbitrum, Harmony, Moonriver, and Gnosis Chain. MAI is one of the most crosschain assets in DeFi, currently on 18 chains through Multichain. Accepted collateral includes interest-bearing assets like Aave Market Tokens. Users are not charged interest for borrowing MAI - instead, they are charged a 0.5% fee upon repayment.

About Aave V3 Efficiency Mode and Isolation Mode

Aave V3 has launched, and has brought with it new mechanisms (’modes’)

• Efficiency Mode (See documentation:https://docs.aave.com/developers/whats-new/efficiency-mode-emode)

  ‘E-mode’ in Aave v3 allows depositors of stable assets to increase their Loan To Value up to 97%. Depositors that opt-in to ‘E-mode’ are only able to borrow other stable assets similar to their deposited assets.

  The High Efficiency mode feature (or "eMode") is designed to maximise capital efficiency when collateral and borrowed assets are correlated in price. The RISK_ADMINS and POOL_ADMIN, set by Aave Governance, can configure a maximum of 255 eMode categories, with each EModeCategory having following risk management parameters:

  • LTV (Loan to value)

  • Liquidation threshold

  • Liquidation bonus

  • A custom price oracle (optional)

  Example:

  • Depositor deposits 100 $USDC into Aave v3.

  • Depositor would be able to borrow 82.5 $USDC worth of another asset on Aave.

  • Depositor opts into ‘E-mode’

    • Depositor can now borrow 97 $USDC worth of another stable asset.

(Current assets available for ‘E-mode’ include: DAI, USDC, USDT, EURS, agEUR, & jEUR)

• Isolation Mode (See documentation:https://docs.aave.com/developers/whats-new/isolation-mode)

  Isolation mode allows depositors to deposit new assets and borrow against them. These assets can only be used as collateral for stablecoin borrowing, and can also only be borrowed against up to a pre-determined amount.

  Isolation mode allows to list new assets as Isolated which has a specific debt ceiling and can be only used to borrow stablecoins that have been permitted, by Aave Governance, to be borrowable in isolation mode.

Parameters:

V3 Efficiency mode (E-mode):

• 97% LTV

• 98% Liquidation threshold

• 10% reserve factor

V3 Isolation mode:

• 75% LTV

• 80% liquidation threshold

• 10% reserve factor

• $50M initial debt ceiling

Links:

Mai finance:https://www.mai.finance/

MAI Contract Addresses:

Polygonscan (Polygon):https://polygonscan.com/token/0xa3Fa99A148fA48D14Ed51d610c367C61876997F1

Snowtrace (Avalanche):https://snowtrace.io/token/0x3b55e45fd6bd7d4724f5c47e0d1bcaedd059263e

FTMScan (Fantom):https://ftmscan.com/token/0xfb98b335551a418cd0737375a2ea0ded62ea213b

Additional Contract Addresses:https://docs.mai.finance/functions/smart-contract-addresses

MAI Audits:

Cloakwire:https://cloakwire.com/qi-dao-security-audit/

Bramah Systems (Link not working but will post):

https://uploads-ssl.webflow.com/606120c25fb119221b762612/60bd3b9a1366549deb6a1cf7_Mai_Finance_Audit_Bramah.pdf

MAI Coingecko:https://www.coingecko.com/en/coins/mimatic

QiDAO Whitepaper:https://docs.mai.finance/introduction-1

QiDAO Defillama:https://defillama.com/protocol/qidao

Documents:https://docs.mai.finance/

MAI sourcecode (Github):https://github.com/0xlaozi

Recommendation:

I recommend that the Rabbithole metagovernance pod vote ‘Yes’, signaling support for the addition of MAI on Polygon, Avalanche, and Fantom Aave V3 markets. MAI is a very reputable stablecoin, and will assist in the expansion of usable assets in ‘E-mode’ on Aave v3. The growth of ‘E-mode’ is great for users, and will also play a key role in the long-term sustainability of the Aave protocol! Allowing users to borrow up to 97% of their collateral is beneficial for users, and given the stable nature of these assets does not pose as an increase to risk for the Aave protocol. Additionally, MAI is becoming extremely popular amongst these chains, and is very deserving of an Aave market listing! I see this proposal as positive sum, which is a core value of Rabbithole’s.

Open Questions:

Feedback:

The Aave community as a whole seems to be very supportive of this asset addition, based off of feedback in the forum discussions!

Execution status: Executed

Vote: Yes

Community Vote:

• 21 Y

• 1 N

Pod Vote

• 16 Y

• 0 N