QIP166: Add MAI-DAI Arrakis Vaults as Collateral for MAI

MAI liquidity has been a recurring blocker for increasing debt ceilings and growing QiDao’s TVL. Given the 0% interest model of MAI loans, it is difficult to grow liquidity for MAI under conventional liquidity mining methods.

MakerDAO previously added DAI-USDC LPs as collateral for DAI via Arrakis Uni V3 positions. This has created over $1bn in liquidity for DAI LPs that are not incentivized. That amounts to sizable savings in liquidity mining for DAI liquidity. Link to MakerDAO vaults: https://oasis.app/asset/dai#earn.

This proposal seeks to follow a similar path as MakerDAO, but on Polygon.

MAI LP Specifications

• MAI-DAI LPs
• Uniswap V3 positions managed by Arrakis
• 0.01% and 0.05% fee tiers

Risk Parameters

• minimum collateral to debt ratio: 102%
• min debt: 10 MAI
• max debt: 50M MAI

Quorum Standards

The option with the most votes will be adopted.

Options

• Accept proposal
• Further discussions needed