Thread by @rektdiomedes

Thread: Why @QiDaoProtocol Could Be One Of The Hottest Defi Protocols Of 2022

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So...

@QiDaoProtocol is one of my favorite protocols in all of defi, and its also (cont.)...

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...one of the most complicated.

As a result I wanted to do this thread + #FrenchChart to help anyone newly looking at it get a basic understanding.

I am not affiliated with @QiDaoProtocol, but I do hold their $QI token, full disclosure.

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This thread definitely won't be perfect, but I've tried to make it as thorough yet understandable as possible.

Also - a couple of frens on here have also mentioned doing threads on it soon, so once they do I'll add those to the end of this one :)

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So... what is @QiDaoProtocol?

Essentially it is a stablecoin protocol that lets users deposit tokens (and interest-bearing tokens!) into 'Vaults', and borrow the QiDao stablecoin $MAI against them.

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Its sort of like @MIM_Spell, but with 0% loans and veCRV-style tokenomics + gauge votes.

The governance token is $QI (yes- it has the same ticker at @BenqiFinance unfortunately- but @QiDaoProtocol used it first! lol)

So again...

$MAI = stablecoin
$QI = governance token

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Qidao got started on @0xPolygon in the spring of 2021, and has since then added a number of additional chains (see below).

I'm not 100% sure who the founders were vs other og's, but noted QI-Chads include:

@0xLaoZi
@Benjamin918_
@0xkila
@Wraithers_

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The way the protocol works is extremely interesting.. (re-pasting #FrenchChart below)

Users deposit tokens (ETH, Fantom, etc) into 'Vaults', and then borrow $MAI against them.

Loans are 0%, but with a 0.5% payback fee. Liquidations can occur, but they are quite gentle.

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Some vaults accept IB-tokens - or interest-bearing tokens - that continue to produce yield WHILE serving as collateral.

Many of these are @beefyfinance receipt tokens, since Beefy's auto-compounding makes this process seamless.

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Some @QiDaoProtocol vaults are incentivized with emissions of the governance token, $QI (see CoinGecko stats below).

This means you can be paid to borrow for some vaults.

These vault incentives just started being ran by Gauge Voting (more on this later).

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$QI is the token that potential QiDao investors will be focused on, and there are three things one can do with it.

1. Lock it up in Qidao for 1-4 years, in exchange for emissions of $QI (apr) and voting rights on gauges and DAO decisions.

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2. Farm it paired with other tokens, on AMM's like @QuickswapDEX, @traderjoe_xyz, etc. (many of these pools are also incentivized with $QI emissions so they have great apr's)

3. Earn it by bonding/minting (a new feature Qidao is experimenting with).

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Right now there is just over 200M $MAI in circulation, but that $MAI is spread across numerous chains, and built into a variety of important protocols.

Its also collateralized by an extremely diverse set of vaults.

As a result...

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...I think the market cap of $MAI should keep growing at a rapid pace, and by the end of Q1 it should be regarded alongside $FRAX, $MIM, and $DAI as one of the top stablecoins in #DeFi.

The success of $QI should follow suit...

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..While @QiDaoProtocol is not as profitable pound for pound as @MIM_Spell, since it offers 0% interest rate loans, it is developing increasingly important power on the protocol<>protocol level.

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Protocols can benefit immensely from having their tokens locked up long-term in @QiDaoProtocol vaults, AND from the ability to borrow against their tokens vs having to raise capital by selling their tokens and negatively impacting price.

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Indeed, the @QiDaoProtocol team has been insanely successful at developing cross-protocol partnerships, and $MAI and its vaults are now integral aspects of numerous other protocols.

This brings us back to the issue of Gauge Votes...

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We've all seen from the Curve Wars just how huge Gauge Voters and bribes can be, and this concept presents another interesting angle re: @QiDaoProtocol.

While Curve is an AMM and QiDao is a stablecoin vault/lending protocol, they both determine emissions via Gauge vote.

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As @QiDaoProtocol grows, it seems logical that vault incentive emissions will grow in importance.

This could/should catalyze 'bribes' a'la what we've seen with @CurveFinance.

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Another thing I'm keeping a lookout for is the possibility of protocols like @LiquidDriver or others creating liquid versions of locked $QI, as we're seeing with inSPIRIT on Fantom, or @ConvexFinance w/ $veCRV.

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No matter what happens though, I am super bullish for the future, as the @QiDaoProtocol team has shown themselves to be relentless shippoors and partnership-builders.

As a result, I am both farming $QI and have quite a bit locked (around 4% of port for the latter).

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In conclusion, plz RT and follow if you found this helpful!

Below I will link to great resources on @QiDaoProtocol:

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-Page on @coingecko for $QI: coingecko(dot)com/en/coins/qi-dao

-Docs: at docs(dot)mai(dot)finance

-The Amazing Lao Zi QiDao YouTube channel (including tons of interviews with devs and founders from other projects): youtube.com/c/LaoZiQiDao/v…

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-QiDao-Qimps Unofficial Guide To Mai Finance: guide(dot)qidao(dot)community/

-Tweet from the brilliant @CompleteDegen:

https://twitter.com/CompleteDegen/status/1480508717447749643

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-Interesting stuff:

https://twitter.com/0xPolygonDao/status/1481581349081395202

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Finally, if you like money-lego's like @QiDaoProtocol, here's a few of my favorite based Chad frogs to follow:

@Cryptoyieldinfo
@BillyBobBaghold
@Mark2work
@mjoaris
@HecSaurus
@thebeefycow
@phtevenstrong
@knowerofmarkets
@blocmatesdotcom

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