QIP247: Onboard m.USDC to QiDao Metis PSM

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network: Metis author: 0x22cFAE74Ed0B44eeCd9b0cba30D74B47EE13dbFF implementor: DAO created: 2025-09-29

Summary

Approve m.USDC Token (0xEA32A96608495e54156Ae48931A7c20f0dcc1a21) on Metis as collateral for QiDao’s peg stability module (PSM).

Abstract

This proposal introduces a Peg Stability Module (PSM) on Metis that allows users to deposit m.USDC and mint MAI at a 1:1 ratio. The deposited m.USDC will be held directly by the PSM contract. The mechanism follows the same design as existing PSMs on Base, Polygon PoS, and Linea, but without deploying deposited assets into yield-generating strategies.

Motivation

Metis chain presents challenges to QiDao’s unit economics, which results in relatively low access to MAI liquidity and limited usability for vault users, farmers and arbitrageurs.

Deploying a PSM on Metis addresses these issues by:

• Making sure users can always access liquidity by minting or redeeming MAI at a 1:1 ratio.
• Reducing dependency on DEX liquidity and minimising slippage.
• Stabilising MAI’s peg on Metis through native arbitrage mechanisms.
• Improving market confidence in holding MAI and functionality of QiDao’s Metis deployment.

MAI on Metis remains isolated and it is a native-only stablecoin. While Metis currently has a limited supply of stablecoins, Aave's m.USDC market with $2.38M market cap is a suitable option to support the protocol's liquidity needs.

Spectification

Future-proofing: If required, the strategy may be migrated again in the future without requiring a new vote, provided the new destination offers more optimal yield, does not introduce additional third-party risks, and remains limited to blue-chip stable collaterals and already approved partner platforms and curators.

Rationale

QiDao needs a PSM on Metis in order to stabilise its peg and ensure liquidity access, as already proven succesfully on Base and Polygon PoS.

Current market yields do not offer sufficient return on single-asset USDC deposits to justify the additional smart contract risk introduced by external strategies. However, enabling instant liquidity access, even with non yield-bearing stablecoins, for all vault users makes the deployment of this PSM a justified and necessary step for supporting MAI on the Metis chain.

Technical Specification

If this proposal is approved, a new PSM contract will be deployed with m.USDC as an approved collateral.

Configurable Values

• Deposit fee: $0
• Withdraw fee: Greater of $1 or 0.3%
• Withdraw period: 3 days