QIP037: Rebalancing MAI liquidity on Market.xyz

Summary:

This proposal is to decide on whether to move some of the MAI liquidity previously injected into the “Stablecoin Pool” to the “Mai x Beefy Leverage Locker”.

Following QIP027, QiDao seeded 1M MAI into the inaugural lending market on Market.xyz. We propose introducing 200,000 of that MAI to the LP market.

The LP market currently allows users to deposit three LP tokens (USDC/DAI/USDT, MATIC/USDC, and renBTC/WBTC) as collateral to borrow MAI from other users. This allows yield farmers to lever their LP yield using MAI.

Introducing MAI from the protocol’s liquidity will lower the cost of borrowing MAI, kickstarting the usage of that market. It will also allow the protocol to earn interest by lending MAI. This revenue will be accrued by the DAO.

Link to LP market: https://polygon.market.xyz/pool/3

What is Market.xyz?

Market.xyz is a platform that allows communities to launch isolated lending markets. Isolated markets allow you to choose what tokens can be lent out and what tokens can be used as collateral for loans. The project is a fork of Rari Capital and was invested by the the founder of Rari Capital, Jai Bhavnani.

Motivation:

• Kickstart the LP market for levering liquidity mining yield through MAI
• Increase the amount of MAI in circulation
• Add a new revenue source for the protocol (interest revenue)

Quorum Standards:

The option with the most votes will be chosen.

Options:

• Move liquidity
• Do not move liquidity