Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name: QiDao Protocol
Project Name: QiDao Protocol
Project Description: QiDao is the most used CDP stablecoin project in crypto, established in 2021.
Team Members and Qualifications:
- Benjamin.lens: Core team
- Pablo the Penguin: Core team
- 0xNacho: Core team
- Royalaid: Core team
- Lao Zi: Core team
- TG: Benjamin891
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: 500,000 ARB
Grant Matching: QiDao will provide $WETH and $QI incentives
Funding Address: arb: 0x6c56271C688F16F50974Ea0B79D80936af374ae1
Funding Address Characteristics: 2/4 multisig used by QiDao for incentives programs.
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
Leverage QiDao’s products to create more natively minted stablecoins on Arbitrum, building a robust liquidity base with other decentralized stablecoins that is not reliant on centralized actors.
QiDao is the most used CDP stablecoins in crypto, with more active borrowers than other major CDP platforms. MAI is a key part of many DeFi ecosystems, allowing L2 users access to tools previously kept in L1.
This grant will allow QiDao to continue to partner with other protocols on Arbitrum. The protocol is already working with several projects deployed on Arbitrum. Any incentives used by QiDao will be in partnership with other projects, increasing the impact of ARB incentives. Protocols that QiDao is already working with on Arbitrum include Frax, Kyber, Ramses, Chronos, Stargate, Axelar, Gains, and Beefy.
ARB tokens can be used to mint MAI directly on Arbitrum, which provides an important flywheel for the Arbitrum ecosystem. As more ARB tokens are emitted via incentives campaigns, QiDao will seek to attract ARB deposits and prevent dumping.
Key Performance Indicators (KPIs):
|KPI||KPI Metric||Source of Truth|
|Increase ARB composability||MAI minted natively on Arbitrum with ARB tokens||QiDao Transparency Dashboard|
|Increase MAI usage||MAI minted natively on Arbitrum||QiDao Transparency Dashboard|
|Increase availability of decentralized stables||MAI supply on Arbitrum||QiDao Transparency Dashboard|
|Total value locked||Value of collateral assets backing MAI on Arbitrum||QiDao Transparency Dashboard|
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
This grant proposal has two main goals, which aim to increase interoperability between projects on Arbitrum.
The primary goal is to use QiDao’s native-first model to create more stables minted natively on Arbitrum with assets that belong to Arbitrum and the greater Ethereum ecosystem: ARB token, project-specific tokens like gDAI and stETH-ETH Curve LPs, as well as Ethereum LSTs (stETH, rETH, and sfrxETH). This grant, QiDao’s co-incentives, and our partnerships with teams like Lido, Frax, Curve, and others, will attract users to mint stablecoins natively on Arbitrum.
The second goal is to foster interoperability between projects. What makes DeFi better than TradFi is the ability to connect various projects seamlessly. QiDao has already executed major integrations with most of DeFi’s long-standing projects. With Lido, for example, QiDao ran a minting incentives campaign, which accounted for over 50% of Curve’s stETH-ETH liquidity on Optimism at the time. On Arbitrum, QiDao has plans to integrate several projects to increase interoperability. These projects include:
- Frax: sfrxETH as collateral & joint liquidity for decentralized stables
- Lido: stETH derivative collaterals
- Inverse: decentralized stable co-LM
- Kyber: smart liquidity via Elastic
- Curve: LPs as collateral
- Aave: amTokens as collateral. MAI already listed on Aave
- Gains: gDAI as collateral
- GMX: GLP as collateral
- Ramses: Liquidity growth
In addition to these collaborations, QiDao will release sMAI. This token will represent deposits in QiDao’s stability pool. sMAI will be fungible and transferable, allowing for integrations with other projects such as AMMs, lending markets, and other stablecoins. MAI already has a Chainlink oracle, which will facilitate integrations.
Bridging into Arbitrum will be limited to encourage native minting against native assets, and prevent short term farming.
Justification for the size of the grant:
The grant size is optimal for running a conservative and targeted incentives campaign. QiDao currently attracts the largest number of stablecoin minters in DeFi with minimal and focused incentives.
What sets QiDao apart is partnerships. By collaborating with other projects like Balancer, Frax, and other major DeFi projects, QiDao can ensure that there are no APR shocks. Avoiding excessive hikes in incentives, Arbitrum will be able to get the most ROI from these grants.
Excess grant funds will be returned to the Arbitrum DAO Treasury address (0xf3fc178157fb3c87548baa86f9d24ba38e649b58) as the sunset of the grant plan.
Execution Strategy: [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
QiDao has a number of automated processes that will aid it in distributing incentives.
- Borrow incentives: incentives for minting MAI against ARB and other synergistic assets will have set APRs, allowing the DAO to control the efficiency of incentives. This will also have great effects on demand for ARB as well as other value-add assets like sfrxETH
- NFT achievements: to focus on interoperability, QiDao has developed a fully onchain achievements platform to track user actions. This will allow incentives to be distributed with much greater precision. This platform is open-source and available to any teams looking to improve their incentives efforts
- Other incentives distributions will be automatically deployed via partnerships with other stablecoins as well as DEXs
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?: Yes, QiDao is native to Arbitrum. MAI is minted directly on Arbitrum against assets that exist on Arbitrum.
On what other networks is the protocol deployed?: QiDao is deployed on multiple chains, which will aid in bringing more gas fee-minded users to Arbitrum. These chains are: Polygon, Ethereum, Fantom, Moonbeam, zkEVM, BNB, Optimism, Avalanche, Base, Metis, and Gnosis.
What date did you deploy on Arbitrum?: QiDao launched native MAI on Arbitrum on April 2022
- Usage: QiDao is the most used CDP stablecoin project, with over 10k active minters. In comparison with other major stablecoins like MakerDAO and Liquity, which have 2,300 and 1,100 active lending respectively.
- Integrations of MAI: QiDao has integrated its stablecoin into most major DeFi platforms. A few of these platforms are Aave, Curve, Balancer, Layer Zero, Axelar, and Kyber.
- Integrations within QiDao: the protocol has built added lego blocks from most major DeFi plafforms. A few of these integrations include Curve LPs, Aave aTokens, Axelar axlTokens, and Gains’s gDAI.
- Long-term builders: MAI is one of the few stablecoins deployed natively outside of Ethereum that has existed for several years. While many stablecoins from Ethereum have continued to exist with few issues, most of the stablecoins launched outside of Ethereum no longer exist. This has been due to teams leaving as well as hacks.
- Cross Chain Protocol (CCP): QiDao’s open-source module on Safe for protocols to automate operations and voting across several chains. As one of the first crosschain DAOs, QiDao has continued to innovate in this space. CCP is slated to be released at SmartCon in October.
- sMAI: QiDao’s stability pool will allow MAI holders to benefit from liquidation activity. Being fungible, sMAI will provide native yield for projects integrating MAI.
- QiDao V3: the next iteration of QiDao is coming to Arbitrum. This version takes years of experience at QiDao and will make Arbitrum a hub for stablecoin innovation. More details will be released in the coming weeks.
- Native Native Native: MAI is minted directly on Arbitrum, which increases its benefits to the ecosystem. This is in contrast with stablecoins that are merely bridged to Arbitrum.
- Aave Guardians: QiDao has adopted the Aave Guardians standard to secure its smart contracts: Snapshot
- QiDao has been live for almost 3 years, and has been audited 3 times. It has also been reviewed by several peer teams.
Is your team prepared to create Dune Dashboards for your incentive program?: Yes, or an alternative dashboard with the same information.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread? Yes
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes