QIP183: Add gDAI as Collateral for MAI

gDAI is a receipt token for DAI deposits on Gains Network. DAI is used by Gains users to perform trading activities. gDAI depositors act as counterparty facilitators to trades on Gains.

• There are currently over 15M DAI tokens stored in gDAI on Polygon, earning 14% APY.
• There are currently over 17.5M DAI tokens stored in gDAI on Arbitrum, earning 26% APY.
• This proposal is to list gDAI as collateral to mint MAI on both Polygon and Arbitrum.

gDAI statistics, including historical APY and PnL figures, are displayed in Gains Network’s Dune dashboard: https://dune.com/unionepro/Everthing-Gains-Network.

Risk Highlights

gDAI depositor earnings are the inverse of earnings/losses for Gains traders. Historical data shows that over time, traders lose and gDAI depositors win.

The overcollateralization of the gDAI vault prevents gDAI from falling below the price of 1 DAI. In the event that the system falls below 100% collateral, users are incentivized to cover the gap via fixed rate boosted deposits. GNS, the governance token for Gains, is also used as a backstop for the system.

gDAI can only be withdrawn at the end of each epoch. This means that liquidators active during epochs would have to wait for the end of the epoch to retrieve the underlying DAI.

Vault specifications

• Collateral asset to be used: gDAI
• Minimum collateral to debt ratio: 112%
• Performance fee enabled
• Minimum debt: 10 MAI
• Maximum debt: 5M MAI
• Oracle provider: Chainlink
• Risk grading: B-
• Risk methodology: https://docs.google.com/spreadsheets/d/1vaVu8o4lBI04vkzq6HBfdYk9363PRobreQ0MmQlOiyI/edit?usp=sharing

Motivation

• Partner with Gains Network, a Polygon-native project
• Appeal to a new customer and dynamic customer base
• Increase revenue for QiDao

Quorum Standards

The option with the most votes will be adopted.

Options

• Approve proposal
• Further discussions needed
• Abstain