Qi Dao | Mai.Finance

Summary

Eliminate all Polygon MAI bad debt (majority comes from Fantom chain) and make the chain more self-sufficient moving forward.

Abstract

MAI currently held in the Polygon treasury will be burned. Additional treasury assets will be used to market burn 668,984.97 MAI on Polygon.

Motivation

Polygon is the chain with the highest TVL and most circulating MAI for QiDao. 34% of all circulating MAI is on Polygon! 62% of TVL (collateral backing Mai) is on Polygon! Eliminating all bad debt on Polygon would go a long way in restoring confidence in MAI as a stablecoin. This is critical to make the protocol more efficient/profitable. The current price of MAI on Polygon is ~$0.90. In addition to being the most important chain to eliminate bad debt on (and repeg), it is one of the closest ones to already accomplishing this. Once the bad debt is eliminated it will be more straightforward to repeg MAI on Polygon if it doesn’t happen automatically.

Rationale

Right now there is MAI sitting ideally in the treasury that would be better off being burned. Also there are tokens sitting in the treasury from dying protocols or just small quantities and selling them would simplify the treasury. These tokens would be better used to eliminate bad debt. Lastly stablecoins sitting in the treasury have not benefitted the QiDAO in the bullrun and are actually losing value daily in the form of inflation. Using these tokens for removing bad debt is better than tokens that are more likely to appreciate significantly in the next 18 months.

Technical Specification

The Polygon treasury has 11,148 MAI. These should be burned. QiDao’s operations team will handle the rest of the process so that 668,984.97 MAI are burned. It will be up to the executor’s discretion how that is achieved.