QIP207: Add sDAI as Collateral for MAI on Gnosis Chain

sDAI on Gnosis Chain (GC) is a DAI derivative that earns yield from MakerDAO’s DAI savings rate (DSR). All of DAI bridged to GC is staked on the DSR, but not all of it is in sDAI form. As a result, sDAI on GC earns a higher yield on GC than on Ethereum. There is currently $11M+ on sDAI Gnosis Chain: https://defillama.com/protocol/sdai.

MAI on GC is isolated from other chains, much like Base. As a result, QiDao can grow on GC without barriers brought up by MAI’s peg on other chains.

Additionally, bridge risk from sDAI collateral on GC is completely isolated to QiDao’s GC deployment. In a worst case scenario on GC, other chains are shielded.

Vault specifications:

• Collateral asset to be used: sDAI
• Minimum collateral to debt ratio: 110%
• Performance fee: 1% to 5% APY on sDAI (flexibility to be given as the APY for * sDAI on GC may fluctuate)
• Minimum debt: 100 MAI
• Maximum debt: 2M MAI
• Oracle provider: Chainlink
• Risk grading: A-
• Risk methodology: https://docs.google.com/spreadsheets/d/1SvsYPki_0QtpQIIU1mP71nTMTAd1TBrSQ-dBID8eQrw/edit?usp=sharing

Motivation

• Grow QiDao’s presence on Gnosis Chain
• Increase protocol revenue

Quorum Standards

The option with the most votes will be adopted

Options

• Approve proposal
• Further discussions needed
• Abstain