Timeswap Partners with QiDAO

Published on: 17.09.2022

Timeswap partners with QiDAO. Timeswap is launching the 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.

QiDAO aka Mai Finance enables the creation of the MAI stablecoin which is a fully collateralized stablecoin. Like Timeswap, QiDAO is also Polygon’s 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 managing 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 includes Governance Tokens, Liquidity Tokens, Interest bearing tokens, and Vault strategy tokens. This exceeds every collateralized stablecoin out there, making MAI the most decentralized 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.

Furthermore, Qi DAO plays a crucial role in governing the QiDAO protocol. The $QI is the governance token of the Qi DAO, it generates value from everything in the QiDAO ecosystem.

Timeswap and QiDAO Partnership Evolves

For the uninitiated, Timeswap is the first fully permissionless and oracles AMM-based Money Market protocol. Its three variable AMM X*Y*Z = K enables the creation of pools with any two erc20 tokens. For 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. Furthermore, 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 the maturity date in case they default on their debt.

The Timeswap platform is partnering with QiDAO to launch an MAI—MATIC pool on Polygon mainnet. The pool will have a maturity time of 2 weeks. In addition, 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 up to 2 weeks.

Here’s what you can do in the MAI — MATIC pool:

Earn fixed interest by lending MAI.
Borrow MAI at a fixed interest.
Leverage MATIC with no liquidations.
Add liquidity to earn transaction fees.

Benefits of using MAI on Timeswap

Non-liquidatable loans- 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- gives lenders/borrowers a unique customization option that 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 centralized entity or through DAO governance. 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.
Liquidity Providers – 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.

Timeswap V2 Coming Soon

Currently, Timeswap is building V2 of its Time machine which brings some new features making Timeswap 4–5x capital efficient.

Here are some of the most important V2 features

Anytime entry-exit for lenders/LPs
4x-5x more capital efficient than V1
Bi-directional pools
Single sided liquidity

ABOUT Timeswap

Timeswap is the world’s first fully decentralized AMM-based money market protocol which is self-sufficient, non-custodial, gas efficient, and works without the need of oracles or liquidators. It provides flexibility to the end-user by allowing the user to decide their risk profile and accordingly set the interest rates & collateral for each lending or borrowing transaction. It is brutally minimalistic, gas-efficient, and permission-less allowing anybody to create a money market for any ERC-20 tokens.

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