QIP167: Add stMatic Beefy Strategy as Collateral for MAI

Beefy currently has 3 strategies for stMatic-Matic LPs on Polygon. This proposal seeks approval for Balancer LPs as collateral for MAI. The LP on Balancer has $30M in TVL, with $12M of that farmed through Beefy. The total APY on the strategy is 13.70% at the time of writing.

Revenue sharing

The Beefy team will introduce a profit sharing proposal to the DAO to share performance fee revenue in proportion to TVL attributed to partner protocols. For context, QiDao vaults for Beefy strategies are typically the main driver for TVL in those strategies.

QiDao will implement an optional 0%-10% performance fee on the APR of this strategy when used as collateral. This will leave QiDao with other options if the Beefy team’s proposal does not pass or if its implementation stalls.

Proposed risk parameters

• Collateral: Beefy stMatic LP strategy on Balancer, with LDO boost
• 130% minimum collateral to debt ratio
• Minimum borrow: 10 MAI
• Maximum borrow per vault: 1M MAI

Motivation

• Grow TVL on Polygon
• Increase revenue
• Strengthen relationship with Balancer and Beefy

Quorum Standards

The option with the most votes will be adopted.

Options

• Approve proposal
• Further discussions needed