avtoCROSS Partners With QiDAO
The long-awaited time is here, and the premier stableswap protocol on Cronos chain, CROnos Stable Swap (or simply CROSS), is ready to unleash our second metapool featuring the $MAI stablecoin together in partnership with QiDAO, the official custodian of $MAI!
What is a Metapool?
Metapools allow for the featured token (in this case $MAI) to seamlessly trade with xUSD and its underlying constituents ($USDC, $USDT, $DAI). The key benefits over doing so over simply providing a normal pool of 4 tokens include:
- Prevents dilution of the existing xUSD 3Pool. Pool TVL facilitates high volume low slippage swaps, and metapools enable $USDC, $USDT, $DAI liquidity to be concentrated in a single place rather than spread thin
- Metapools allow less liquid tokens to be listed without adversely affecting the liquidity of the tokens with higher liquidity and volume
- Metapools also shield LP providers from systemic risks. People who provide liquidity into the xUSD 3Pool who do not provide liquidity into any specific Metapool is shielded from the risks of that Metapool’s featured token. As a corollary to the above point, this allows CROSS to feature less liquid and riskier tokens without risking the protocol’s stability due to this automatic ringfencing of risks
Either way, the Metapool concept enables greater coverage of assets in the ecosystem and ultimately that translates to better volume and fee-generating potential into the Treasury which ultimately underpins the valuation of CROSS tokens.
Why $MAI and $QiDAO?
QiDao is Polygon’s first native stablecoin protocol, which has subsequently spread to other chains. It is self-sustaining, community-governed, and decentralized. Its stablecoin, $MAI, is secured by being overcollateralized, ensuring that there is always more value locked in the protocol than the worth of outstanding MAI.
Mai Finance is a frontend for the QiDao Protocol, which allows users to interact with the various products of the protocol.
$MAI is a stablecoin backed by collateral, and can only be minted with this collateral backing it. $MAI is created when users deposit accepted tokens (currently $MATIC) as collateral in vaults and in turn receive a loan against that collateral. Users can also mint $MAI through Anchor where $MAI is minted in exchange for accepted stablecoins. $MAI is soft pegged to the $USD, meaning that 1 $MAI is around 1 $USD.
While $MAI is one of the DeFi stablecoins that are quickly gaining traction in the overall crypto space, volume and usage is still very low on Cronos, ostensibly because of the thin liquidity depth. CROSS intends to change that by adding $MAI to our arsenal of swaps.
Learn more about QiDAO and MAI here: https://docs.mai.finance/
MAI CRC20 Address: 0x2Ae35c8E3D4bD57e8898FF7cd2bBff87166EF8cb
How to participate in the MAI Metapool
A. For existing xUSD stakers or hodlers
- Unstake $xUSD from the xUSD Staking Farm (under “Farm”) to get our signature $xUSD stablecoin tokens in your wallet
- Tick the “Deposit wrapped” checkbox, deposit $xUSD into the MAI Metapool (or leave it unticked to deposit in $USDC, $USDT, $DAI) (under “Pools”) to receive MAI Metapool LP tokens in your wallet. You will now passively earn swap fees
- Deposit MAI Metapool LP tokens into the MAI Metapool Staking farm (under “Farm”) to enhance your yields and earn CROSS tokens
B. For Cronos natives who are new to CROSS
- Navigate to the “Pools” tab, look for the “MAI Metapool” and press “Deposit”
- You may deposit any of the constituent tokens ($USDC, $USDT, $DAI, $xUSD, $MAI) in any combination as you wish to receive MAI Metapool LP tokens. Tick the “Deposit wrapped” checkbox to deposit in $xUSD (or leave it unticked to deposit in $USDC, $USDT, $DAI), untick it to deposit in the constituent stablecoins. You will now passively earn swap fees
- Deposit MAI Metapool LP tokens into the MAI Metapool Staking farm (under “Farm”) to enhance your yields and earn CROSS tokens
Source:
https://medium.com/@avtoCROSS/introducing-mai-metapool-with-qidao-b38cf183d21c