KVORUM
aaveSource: Aave governor v2 · #93

Add MAI to Aave V3 on Polygon

executedAug 26, 2022, 03:14 PM UTCby980x985a…6a43

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to add MAI (miMatic), the largest native stablecoin on Polygon, to Aave V3 on Polygon as a borrowable asset in isolation mode with 75% LTV and 80% liquidation threshold. MAI is an overcollateralized, non-custodial stablecoin with ~$90M TVL, $70M market cap, and presence across 18 chains. The asset has maintained peg through market downturns and undergone 2 security audits.

Type
protocol addition

Key changes

  • Add MAI as a borrowable asset on Aave V3 Polygon(high)
  • Enable MAI in stablecoins efficiency mode(high)
  • Configure isolation mode with 75% LTV and 80% liquidation threshold(high)
  • Set initial debt ceiling of $2M per chain(medium)
  • Set 10% reserve factor for MAI(medium)

Notable concerns

  • MAI supply controlled through temporary debt ceilings managed by 3/5 multisig
  • QiDao protocol retains minting power on bridged chains via canonical bridging
  • Protocol governance and collateral decisions dependent on QiDao DAO votes executed by multisig
Contracts0x158a6bc04f0828318821bae797f50b0a1299d45b0x83Fba23163662149B33DBC05cF1312DF6dcBA72b
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

938 words

Author:

QiDao Protocol core team

Forum post:

https://governance.aave.com/t/add-mai-on-aave-v3/7630 Proposal to add support for MAI (aka miMatic) on Aave V3 (On Polygon)

Summary

MAI is the first and largest native stablecoin project on Polygon and a variety of other chains. It is an overcollateralized stablecoin that is non-custodial. All MAI is backed by collateral locked in user-managed vaults. MAI minting is available on 8 chains, and bridging to 18 chains.

All accepted collaterals are priced using Chainlink price feeds. MAI has stayed within its peg through several market downturns.

There’s around 250M MAI minted, with liquidity on all top DEXs in which MAI is present. A significant portion of liquidity for MAI is on Curve. MAI hosts the largest pool on Curve Polygon.

Risk Parameters

V3 Efficiency mode: stablecoins V3 Isolation mode: 75% LTV, 80% liquidation threshold, 10% reserve factor, $2M initial debt ceiling per chain

Specifications

What is the link between the author of the AIP and the Asset?

Core team at QiDao Protocol.

Provide a brief high-level overview of the project and the token

MAI is the first and largest stablecoin protocol on Polygon. It allows users to lock their tokens and use them as collateral to mint MAI at 0% interest.

MAI is an overcollateralized CDP stablecoin on Polygon, Avalanche, Fantom, Arbitrum, Harmony, Moonriver, and Gnosis Chain. MAI is one of the most crosschain assets in DeFi, currently on 18 chains through Multichain. Accepted collateral includes interest-bearing assets like Aave Market Tokens. Users are not charged interest for borrowing MAI - instead, they are charged a 0.5% fee upon repayment.

Despite market downturns during its existence, MAI has maintained its peg.

MAI currently has a TVL of around $90M, and has around 70M MAI outstanding.

Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

Being the largest native stablecoin on Polygon and Fantom, MAI has a wide reach within the native projects on those chains. Listing MAI would connect Aave to most communities in these chains through the integrations already made by MAI. MAI is one of the most crosschain assets, available on 18 chains through canonical bridging. As a result, users will be drawn to borrow MAI to bridge value to other chains and take advantage of the many yield opportunities that MAI has.

MAI’s risk profile is low. It is used by large institutions. MAI has also received grants from several blockchains, including Polygon, Metis, Optimism, Arbitrum, and Gnosis.

Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?

MAI is governed by the QiDao Protocol, a community-run DAO around the QI token. Several other projects have participated in our DAO through proposals and bribing, including Frax Finance, Stake DAO, Celsius, * PolygonDAO, SpiritSwap, SpookySwap, Gotchi Vault, and Beefy Finance The Polygon Alliance was recently set up to participate in QiDao.

How is the asset currently used?

Lending (Market.xyz, Impermax, Tarot) Listed on several DEXs on 18 chains. Main DEXs are Curve, Balancer, QuickSwap, SpookySwap, SpiritSwap, Solidly, Saber, and TombSwap Top two pools on Curve Fantom and Polygon MAI is used by Celsius to borrow against their AUM MAI has been used by Polygon to award bounties MAI offers low-cost leverage to strategies on Stake DAO, Yearn, Beefy, and Aave

Emission schedule

Users can mint MAI by locking up their assets and borrowing against that value at 0% interest. Temporary debt ceilings serve as the a supply mitigation.

Token (& Protocol) permissions (minting) and upgradability.

Is there a multisig? What can it do? Who are the signers?

All funds stored as collateral are fully controlled by users There is a 3/5 multisig, comprised by the QiDao team. Team members are doxxed and regularly appear on podcasts, live streams, and crypto conferences The multisig executes the results of Snapshot votes: liquidation ratios for new collaterals, partnerships, and debt ceilings. There have been over 70 votes since the start of the DAO: see votes here 1. Since the protocol uses canonical bridging, QiDao retains the power to mint MAI on chains it is bridged to.

Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

Security Considerations

MAI has undergone 2 thorough audits (linked below). Constant internal reviews are performed to ensure MAI’s economic and technical safety.

The protocol currently has around $90M TVL.

Other links

Contract addresses: https://docs.mai.finance/functions/smart-contract-addresses

Chainlink Oracle: 0xd8d483d813547CfB624b8Dc33a00F2fcbCd2D428 (Polygon)

Proposal's technical implementation

This asset listing will be executed via Aave's cross-chain governance module, described here https://github.com/bgd-labs/aave-v3-crosschain-listing-template. The listing of miMATIC via cross-chain is one of the examples included there, together with tests.

Proposal Payload on Polygon: https://polygonscan.com/address/0x83fba23163662149b33dbc05cf1312df6dcba72b#code

BGD Labs has provided support on the technical aspects of the listing and Certora has reviewed the proposal's payload.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The proposal describes a standard Aave cross-chain governance listing: a mainnet vote triggers execution of a payload contract deployed on Polygon that configures MAI's risk parameters (isolation mode, LTV, liquidation threshold, reserve factor, debt ceiling, e-mode). The single decoded on-chain action is a call to execute(address) with the argument 0x83Fba23163662149B33DBC05cF1312DF6dcBA72b — this address exactly matches the Polygon payload contract address explicitly cited in the description's 'Proposal's technical implementation' section. Since Aave cross-chain listings work by having the L1 governance vote trigger execution of a pre-deployed, audited payload contract on the target chain, this single execute() call is the expected and complete on-chain footprint of the proposal at the L1 level. The deeper risk parameters (LTV, liquidation threshold, debt ceiling, etc.) are implemented inside the payload contract's own logic, which is not separately decoded here, so those specific values cannot be independently verified from this calldata alone. However, there is no target mismatch, no extra claims, and no omission at the level of what is actually decoded — the address matches perfectly. Given the limited scope of the decoded data (only one generic execute call, with internal payload logic not decoded), confidence is medium rather than high, but there is no indication of any discrepancy between the description and what is decoded.},

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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04Actions

1 total
#0execute(address)chain 0x1
Target
0x158a…d45b
Value
0 wei
Function
execute(address)
Arguments
{
  "0": "0x83Fba23163662149B33DBC05cF1312DF6dcBA72b"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

AIForum synthesis by Kvorumclaude-sonnet-5
sentiment · favorablethread · constructive

Arguments for

  • MAI is the largest native overcollateralized stablecoin on Polygon and Fantom with strong TVL and has reliably maintained its peg through market downturns.— Benjamin918, northernlights, Defiiiiii, jmy09
  • MAI has deep and broad liquidity across major DEXs (especially Curve pools on Polygon and Fantom) and integrations with numerous protocols and blockchains.— Benjamin918, MarcZeller, eboado
  • Listing MAI on Aave V3 with isolation/e-mode would help MAI maintain its peg while giving Aave users and MAI holders new yield and utility opportunities.— MarcZeller, oneski22, davidpgil
  • MAI's canonical bridging design (controlled minting per chain, liquidity-based bridging) mitigates cross-chain fungibility and minting risks.— Benjamin918
  • QiDao has a mature, active governance process with 70+ Snapshot votes and a doxxed, publicly visible core team engaged with the community.— Benjamin918, northernlights
  • MAI has undergone two independent security audits and has a long operational track record (since May 2021) with millions of transactions and tens of thousands of holders.— Benjamin918
  • Community members personally use and value MAI/QiDao alongside Aave, citing strong project fundamentals and team quality.— crzyc, poopster, 0xpisces2707, Francois_vd_W

Arguments against

None surfaced.

Unresolved concerns

  • Governance centralization risk: MAI is controlled by a 3/5 multisig comprised solely of the QiDao team with no community members, raising decentralization concerns.— Alex_BertoG
  • Need for a formal, structured risk analysis following Aave's official risk methodology and new asset listing guidelines, which was seen as initially lacking.— Alex_BertoG, eboado
  • Security of cross-chain minting and bridging mechanisms, given MAI is minted and bridged across many chains, remains a point requiring further clarity.— pakim249
  • Liquidity sufficiency and fragmentation across chains (especially outside Polygon/Fantom, e.g. Avalanche) for supporting e-mode collateral without excessive price impact during liquidations.— Alex_BertoG, eboado
  • Lack of detail on QiDao's planned decentralization roadmap for governance and permissions.— eboado

Notable participants

  • Benjamin918Proposer who authored the listing proposal and provided extensive follow-up data on liquidity, risk, and bridging mechanics.
  • Alex_BertoGRaised critical governance and risk-methodology concerns, pushing for more rigorous analysis before the Snapshot vote.
  • eboadoProvided an independent, measured perspective highlighting the need for deeper risk and decentralization details.
  • MarcZellerAave community figure who expressed clear support, citing peg stability and yield utility benefits.
  • pakim249Raised specific technical concern about security of cross-chain minting/bridging.
  • northernlightsCommunity supporter citing personal experience with QiDao's cross-chain expansion and Aavegotchi integration.
  • oneski22Early supporter enthusiastic about isolation mode enabling faster new asset listings.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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