Mint native MAI on Moonbeam with Stellaswap

Mint $MAI stablecoins on Stellaswap against $xSTELLA and $WGLMR

MAI is a collateral-backed stablecoin, which offers at mai.finance 0% interest lending on several chains. Its 50+ collaterals range from interest-bearing tokens to regular tokens like CRV and BTC. MAI is one of the most crosschain assets in DeFi and can easily be swapped for other stablecoins and tokens.

Launch on Moonbeam:

Users can now mint stablecoins against $xSTELLA and $WGLMR on Moonbeam. The process is very familiar for the Qimp community: create a vault, deposit your assets, and start borrowing stablecoins against your collateral’s value. Read the complete guide here.

What are the benefits of borrowing against xSTELLA and WGLMR?

xSTELLA: is the Auto-Compounding, Stellaswap’s Yield-Bearing Token for Single Asset Staking.

For every swap on the StellaSwap exchange, 0.05% is used to buyback STELLA and given to xSTELLA holders. xSTELLA will continuosly auto-compound and can be used for voting & can be used at other DeFi protocols. Users can claim their original STELLA plus accrued rewards when they unstake.

This means that while users borrow against xSTELLA, their collateral will continue growing accruing yield.

WGLMR: Glimmer (GLMR) is the utility token of the Moonbeam Network, Moonbeam’s primary deployment on the Polkadot network that serves as a developer-friendly parachain. WGLMR is the wrapped version of GLMR.

How much MAI can I borrow?

The xSTELLA and WGLMR vaults on Stellaswap have a 40% Loan To Value (LTV). That’s equivalent to a 250% minimum Collateral to Debt Ratio (CDR).

This determines the maximum amount you can borrow. If the LTV is 40%, you can borrow $40 worth of MAI for a total collateral value of $100.

Once borrowed, what can I do with MAI?

1. Unlock new yields:
Stake your newly minted MAI into yield farms to supercharge your DeFi returns. Launch in 24 hours!

2. Borrow Stablecoin w/o Selling Your Favourite Coins:
Borrow stablecoins backed by your tokens to use the value of your tokens without exiting your long position.

3. Borrow to Buy Other Assets:
Borrow against your existing wealth and buy more assets, expanding your investment portfolio. You could, for example, borrow MAI to buy other tokens such as DOT.

4. Consolidating Debt:
Borrow MAI to pay down high-interest debt, saving on interest payments.

5. No scheduled payments:
You won’t need to commit to monthly payments or deadlines; you can repay your debt at any time that is convenient to you and your needs.

6. Instant lines of credit:
You don’t need credit checks or someone else’s permission to borrow MAI. You are your own bank.

7. MAI as collateral:
Lending protocols require stablecoins to borrow tokens. You could use MAI as stablecoin collateral in those platforms, essentially using your original tokens as collateral for debt in lending protocols.

8. Bridge your MAI to any of the other networks where we are present:
Send native MAI to other chains with our partner bridge Multichain https://app.multichain.org/#/router.

• Moonbeam, Polygon, Fantom, Avalanche, Arbitrum, Moonriver, Harmony, Gnosis Chain, BNB Chain, Boba, Metis, Milkomeda, IoTeX, Celo, Aurora, Cronos, Syscoin and many more to come.

The post Mint $MAI Stablecoins On Stellaswap appeared first on Smart Liquidity Research.