“He who knows others is wise; he who knows himself is enlightened.” —  Lao Zi

<aside> 📖 TL;DR: Explore MAI with Confidence: This FAQ offers transparency and factual insights for both newcomers and experienced QiDao users to make informed decisions on the Base deployment.

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1. What’s MAI?

• MAI is the largest decentralized stablecoin application on Base. It allows users to mint stablecoins (MAI) against decentralized collaterals like ETH and ETH LSTs. There are numerous options for MAI loans, with most offering zero interest lending.

2. Is MAI on Base Isolated?

• Yes. MAI on Base is isolated on three levels:

1. On the users level: Vaults are isolated from each other. No one can borrow from other user collateral nor from different assets.
2. On the protocol level: QiDao is non-custodial. The protocol doesn’t have access to users funds which are always available to be redeemed.
3. On the chain level: Base has been isolated by default since launch, with no bridge options. Governance approval of QIP213: MAI Bridging Parameters on Base formalized this isolation via QiDao’s Chain Risk parameters.

3. What’s the price of MAI? Where is the liquidity?

• It’s important to note that while MAI is on many chains, it operates isolated on Base and Ethereum. The price shown on CoinGecko and other trackers is an average of all chains and not representative of Base’s and Ethereum’s peg:

MAI peg on Base. LPs on Aerodrome, Equalizer and BaseSwap (via https://www.geckoterminal.com/)

4. What’s the backing of MAI on Base?

• MAI on Base is native and backed only by Base vaults. A complete breakdown of collateral deposited, debt and health ratios can be found here.

  https://docs.google.com/spreadsheets/d/1FIBwIfDIhsgswdhu9xHuPgAoQsPPfqQWowOuxEFEK0k/edit#gid=0

• Additionally, the protocol is working on incorporating this information to the Transparency Dashboard and has onboarded Messari as a contributor to bring quarterly reports with all the necessary metrics.