LDO and stETH added as collateral to mint MAI on Ethereum

Projects
1

Hey everyone,

Here to inform that QiDao has once again increased its lending support for Lido assets on its platform.

Now you can mint MAI against stETH at 0% interest on Ethereum.

Additionally, we’ve added LDO to our project financing line. This means that LDO holders will be allowed to mint MAI against LDO with an interest rate. This is not only meant to reduce sell pressure, but also meant to give Lido more options when it comes to treasury management.

More on the project financing line

Typically, companies use a mix of debt and assets to finance themselves. In crypto, however, it’s usually 0 debt. This is bad for projects, specially when token prices are low. This is because projects end up spending a higher percentage of their token budget. In this market, it is important for projects to consider taking on some debt for expenses that would normally be paid for with governance tokens. With even modest increases in token collateral prices, the cost of borrowing is accounted for.

Given the long-standing partnership that QiDao has with Lido, our DAO has added LDO support so that Lido can explore this route.

New vault information

LDO

  • max LTV: 76.9% (130% min collateral to debt ratio)
  • interest rate: 4%
  • repayment fee: 0%

stETH

  • max LTV: 76.9% (130% min collateral to debt ratio). A proposal is being introduced this weekend to increase max LTV for this vault to 80%.
  • interest rate: 0%
  • repayment fee: 0.5%

If you have any questions or feedback, please let us know!

Launch announcement: https://twitter.com/QiDaoProtocol/status/1667516221967970306?s=20

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Thanks again for another update @Benjamin.lens

The borrow rate at 0% is great and was a growth strategy Maker also employed in the past. Awesome to see it now for MAI.

Regarding the project debt financing, last year there were a couple discussions here in the forum about such possibilities (example), which may be interesting for you to skim.

The Lido DAO now has a treasury management committee which will be proposing, maintaining and executing policies related to the DAO’s treasury.
This can be one of the possibilities that committee can look at if ever a time comes for thinking of debt financing.

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