Timeswap partners with QiDAO
Excited to announce our partnership with QiDAO and our first MAI-MATIC pool
Our Time machine is built with a mission to create a fully permissionless and decentralised money market in DeFi. On our journey towards achieving our north star goal, we aim to empower communities and DAOs which are building the future of finance while keeping decentralisation at the forefront of it. Today, we are launching a MAI — MATIC pool in collaboration with QiDAO to enable fixed rate lending/borrowing of MAI stablecoin using MATIC as collateral. Users will be able to lend/borrow in this pool without worrying about liquidations while liquidity providers will be able to earn transaction fees from them.
What is QiDAO?
QiDAO aka Mai Finance enables creation of the MAI stablecoin which is a fully collateralized stablecoin. Like Timeswap, QiDAO is also a Polygon first DeFi protocol and MAI(previously miMATIC) is also known as polygon’s native stablecoin, serving as a catalyst for DeFi innovation #onPolygon.
‘Mai Finance is a way for you to keep your crypto and still be able to spend its value. That means you’re able to borrow stablecoins without having to sell your crypto assets, and do so at 0% interest.’
Anyone can mint MAI stablecoin at 0% APR by depositing collateral into personal vaults and manage it themselves. What differentiates QiDAO from its competitors is the 0% interest for stablecoin borrowers and the wide range of tokens accepted as collateral. QiDAO has $64 million of TVL spread across various different chains.
The range of collateral assets accepted by QiDAO include Governance Tokens, Liquidity Tokens, Interest bearing tokens, and Vault strategy tokens. This exceeds every collateralised stablecoin out there, making MAI the most decentralised stablecoin in DeFi.
Users pay 0.5% fees while repaying their stablecoin debt.
QiDAO’s mechanism enables many use cases for their users and protocols like:
- Perpetual borrowing without interest
- Leverage with 0% funding/fees
- Utility for LP tokens and yield bearing assets
- Utility for governance tokens of projects.
If you thought this was it, then wait until you realise the range of products and services offered by QiDAO like Direct Deposit Module(DDM) and Anchor.
Qi DAO plays a crucial role in governing the QiDAO protocol. $QI is the governance token of the Qi DAO, it generates value from everything in the QiDAO ecosystem.
Timeswap x QiDAO
For the uninitiated, Timeswap is the first fully permissionless and oracleless AMM based Money Market protocol. Our three variable AMM X*Y*Z = K enables creation pools with any two erc20 tokens. Example: USDC — MATIC, MAI — MATIC, MAI — QI, etc
‘Timeswap is like Uniswap, but for lending/borrowing’
Timeswap loans are fixed maturity, that is lending/borrowing happens for a fixed time duration. Timeswap loans have a fixed interest rate, changing interest rates don’t affect lenders/borrowers on Timeswap. Timeswap loans are non-liquidatable, borrowers don’t get liquidated before pool maturity but their collateral is distributed to lenders and LPs after maturity date in case they default on their debt. You can learn more about Timeswap here.
We’re partnering with QiDAO to launch a MAI — MATIC pool on Polygon mainnet. The pool will have a maturity time of 2 weeks. Lenders of the pool will have to lock MAI for 2 weeks to earn a fixed interest on it, whereas Borrowers will be able to borrow MAI at a fixed interest rate for upto 2 weeks.
Here’s what you can do in the MAI — MATIC pool:
- Earn fixed interest by lending MAI.
- Borrow MAI at fixed interest.
- Leverage MATIC with no liquidations.
- Add liquidity to earn transaction fees.
Benefits of using MAI on Timeswap
Recently, the markets have been quite volatile leading to many borrowers getting liquidated on other protocols. Timeswap borrowers on the other hand are not liquidated, instead borrowers have to repay their debt before maturity or their collateral is distributed to lenders / LPs.
Adjustable APR and Collateral Ratio:
Timeswap gives lenders/borrowers a unique customization option which can be used to adjust your APR and CDP(collateral ratio). This allows you to customize your risk-profile.
Market driven Collateral ratio(CDP):
Collateral Ratio while borrowing on other DeFi protocols is decided either by a centralised entity or through DAO governance. On Timeswap, it is decided by the market participants. If more lending happens, CDP goes down. Whereas more borrowing demand leads to high CDP. This enables you to get cheaper loans and leverage higher.
LPs act as a counterparty to both lenders and borrowers, hence they lock both Asset(MAI) and Collateral(MATIC) in the pool. In return they earn 1.25% APR as a fee from both Lenders and Borrowers. They bear the risk of impermanent loss and default risk. You can read more about LPs here.
This is Timeswap V1 for you, anon!
Timeswap V2 coming soon…
Currently we’re building V2 of our Time machine which brings some new features making Timeswap 4–5x capital efficient. Here are some of the most important V2 features for you:
- Anytime entry-exit for lenders/LPs
- 4x-5x more capital efficient than V1
- Bi-directional pools
- Single sided liquidity
Timeswap V2 testnet will be launched soon. You can read more about Timeswap V2 [here]
We’re excited to partner with QiDAO in strengthening the DeFi ecosystem further. We will also be launching more pools with MAI in the coming weeks. Looking forward to introducing the Time Machine to the awesome QiDAO community!
Time Is Money ⏳
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