QIP027: Partnering with Market.xyz on MAI lending market

Summary:

QiDao would like to work with Market.xyz to expand the QiDao lending model to allow for competitive short-term stablecoin loans.

This proposal seeks to greenlight QiDao to inject MAI into a stablecoin market through regular protocol market operations.

QiDao vaults provide a great long-term borrowing opportunity given the flat repayment fee. In order to provide a competitive short-term option for borrowing MAI, QiDao would have to create a lending market for MAI with a floating interest rate. This would allow for a low cost option for loans under 2 months. Instead of launching a lending platform to create these markets, QiDao would like to partner with Market.xyz.

Link to stablecoin market: https://polygon.market.xyz/pool/1

Link to Market.xyz: https://polygon.market.xyz/

What is Market.xyz?

Market.xyz is a platform that allows communities to launch isolated lending markets. These markets are controlled by an admin. In the case of this stablecoin market, it would be QiDao. Market.xyz was created from Rari Capital's code and was invested by the the founder of Rari Capital, Jai Bhavnani.

Seed Amount:

The initial protocol market operation would inject 1 million MAI into the lending market. The act of borrowing MAI from this market would mint MAI with accepted collateral. The protocol would continually adjust the amount of MAI provided to the market in response to supply and demand.

All interest fees earned from the protocol providing MAI will be returned to the DAO.

Motivation:

• Allow for a short-term borrowing option for MAI using fluctuating interest rates as opposed to a fixed repayment fee
• Increase the amount of MAI in circulation
• Introduce a new yield opportunity for long-term MAI borrowers
• QiDao would not have to build or maintain a new protocol to start a lending market

Quorum Standards:

The option with the most votes will be chosen.

Options:

• Partner with Market.xyz
• Do not partner with Market.xyz
• Further discussions needed