MAI (also known as MIMATIC) is a decentralized, over-collateralized stablecoin pegged to the U.S. dollar. It is the core product of the Mai Finance platform, which is governed by the QiDao Protocol. The protocol enables users to lock crypto assets into non-custodial smart contract vaults and mint (borrow) MAI against their collateral at a 0% interest rate. This model allows users to access liquidity without selling their underlying assets. MAI is designed with a multi-chain native architecture, meaning it is minted directly on over 15 blockchains, which mitigates risks associated with cross-chain bridges. ^{[1] [2]}​

Overview

MAI is a crypto-backed stablecoin that aims to maintain a stable value of $1.00. It is generated through the QiDao Protocol, a community-governed lending platform where users can open Collateralized Debt Positions (CDPs), referred to as "vaults". Mai Finance is the primary user-facing decentralized application (dApp) used to interact with the protocol. The entire system is open-source, and users retain full custody of their collateral until a loan is repaid or liquidated. ^{[1] [2]}​

The project's key value proposition is providing interest-free loans and enabling multi-chain functionality without relying on traditional bridged assets. Instead of charging interest, the protocol generates revenue through one-time minting and repayment fees. Governance of the QiDao Protocol, including decisions on collateral types and fees, is managed by holders of the native governance token, QI.^{[2] [3]}​

History

The QiDao Protocol and its MAI stablecoin were launched in early 2021, initially on the Polygon network to leverage its scalability and low transaction fees. ^[3] Throughout mid-2021, the protocol underwent a series of upgrades aimed at enhancing security, operational efficiency, and the algorithmic mechanisms that help maintain the stablecoin's peg. On November 16, 2021, MAI's price experienced significant volatility, reaching an all-time high of $1.79. ^[3]

In 2022, the project pursued its roadmap for cross-chain expansion and implemented a formal governance model, allowing QI token holders to vote on protocol decisions. This led to MAI's integration with other blockchain networks, including Fantom, Avalanche, Arbitrum, and Metis. ^{[1] [3]}

The protocol has also faced challenges. In February 2022, a security vulnerability was exploited in QiDao's Superfluid vesting contract. While the protocol’s core vaults and user funds remained secure, the attacker minted a large number of QI governance tokens and sold them, causing a significant drop in the token's price. ^[1]

More recently, on January 15, 2026, MAI experienced a severe de-pegging event, with its price falling to an all-time low of $0.04132. The price subsequently recovered to its target peg of approximately $1.00. ^[3]

Mechanism and Technology

MAI's functionality is based on a system of over-collateralized vaults, which function similarly to the Collateralized Debt Position (CDP) model used by other decentralized stablecoins. ^[3]​

Minting and Vaults

To create MAI, a user follows a two-step process through the Mai Finance application:

1. Deposit Collateral: The user selects an accepted cryptocurrency on a supported blockchain and deposits it into a QiDao vault. The protocol is known for accepting a wide range of decentralized collateral, including assets like MATIC, ETH, WBTC, and various yield-bearing tokens. ^{[1] [2]}
2. Mint MAI: The user can then mint, or borrow, MAI stablecoins against their collateral. The amount of MAI that can be minted is determined by the asset's specific Minimum Collateral to Debt Ratio (MCR). For instance, an asset with a 150% MCR requires a user to have at least $150 worth of collateral to mint 100 MAI. This creates a debt position for the user, and the collateral remains locked until the MAI loan is repaid. ^[2]

When a user repays the minted MAI plus any associated fees, the protocol automatically burns the repaid stablecoins, removing them from circulation. Once the debt is cleared, the user can reclaim their locked collateral. ^[2]​

Collateralization and Liquidation

All MAI in circulation is backed by collateral assets whose market value exceeds the value of the MAI issued. This over-collateralization is the primary mechanism ensuring the solvency of the protocol. Each vault must maintain its collateralization level above the MCR, which varies based on the volatility of the specific collateral asset. ^{[1] [2]}​

If the market value of a vault's collateral drops and its collateral-to-debt ratio falls below the MCR, the vault becomes eligible for liquidation. During a liquidation event, the protocol seizes the collateral and sells it to repay the outstanding MAI debt, plus a penalty fee. This automated process is essential for maintaining the system's financial stability and ensuring every MAI token remains fully backed. ^[2]​

Peg Stability Mechanisms

MAI maintains its peg to the U.S. dollar through several coordinated mechanisms involving both protocol-level rules and market-based incentives. ^[2]​

Arbitrage Incentives

The protocol creates arbitrage opportunities to naturally correct price deviations from the $1.00 peg.

• When MAI > 1.00. and sell it on the open market for a profit. This increases the supply of MAI in the market, creating downward pressure on its price.
• When MAI < 1.00. This action allows them to close their loans at a discount and creates buying pressure that pushes the price back toward $1.00. ^[2]

Peg Stability Module (PSM)

The QiDao Protocol includes a Peg Stability Module (PSM), which acts as a direct stabilization tool. The PSM allows users to swap MAI for other trusted, centralized stablecoins (such as USDC) at a near 1:1 ratio, minus a small fee. This module functions as a buyer and seller of last resort, creating a strong price floor and ceiling around the $1.00 mark and reinforcing market confidence in the peg. ^[2]​

Multi-Chain Native Architecture

A key differentiator for MAI is its multi-chain native design. Unlike many stablecoins that are issued on a primary chain (e.g., Ethereum) and then "bridged" to other blockchains, MAI is minted natively on each blockchain it supports. For example, MAI on Polygon is minted using collateral on Polygon, and MAI on Arbitrum is minted using collateral on Arbitrum. This architecture eliminates the systemic risk associated with bridge exploits, where a hack on a single bridge could render all bridged versions of an asset on a secondary chain worthless. ^[2]​

Tokenomics

The supply of MAI is dynamic, as tokens are minted when users take out loans and burned when they repay them. As of February 2026, market data sources report conflicting figures for MAI's key tokenomics metrics.

• Market Capitalization: Figures range from approximately $12.8 million to $44.36 million across different data providers. ^{[4] [3]}
• Circulating Supply: Reported circulating supply varies, with figures including approximately 12.8 million, 12.9 million, and 44.26 million MIMATIC. ^{[4] [3]}
• Total Supply: There is a significant discrepancy in reported total supply, with some sources listing figures around 13.8 million MIMATIC while others report over 307 million. ^{[4] [3]}

As a stablecoin, MAI's value is designed to remain near $1.00. However, it has experienced notable price extremes:

• All-Time High (ATH): $1.79 on November 16, 2021.
• All-Time Low (ATL): $0.04132 on January 15, 2026. ^[3]

While CoinMarketCap has categorized MAI as an "algorithmic stablecoin," its core mechanism is based on over-collateralization, similar to a CDP model. Its algorithms are primarily used to manage liquidations and other stability functions rather than controlling supply without collateral. ^[3]

Governance (QiDao Protocol and QI Token)

The QiDao Protocol is a Decentralized Autonomous Organization (DAO) governed by the holders of its governance token, QI. Holders of the QI token can propose and vote on QiDao Improvement Proposals (QIPs), which dictate the protocol's parameters and future development. These votes can influence key aspects such as adding new collateral types, adjusting fee structures, and managing the protocol's treasury. ^[2]​

To participate in governance and earn protocol revenue, users can lock their QI tokens to receive eQi (escrowed Qi). Holding eQi provides increased voting power in governance decisions and entitles the holder to a share of the fees generated by the protocol. This mechanism incentivizes long-term holding and active participation in the ecosystem. ^[2]​

Ecosystem and Use Cases

MAI is integrated across the decentralized finance (DeFi) landscape and serves several primary functions for users.

Use Cases

• Accessing Liquidity: The main use case is allowing users to unlock the value of their crypto holdings by borrowing against them without incurring interest or having to sell the assets.
• Leveraged Positions: Advanced users can mint MAI, use it to purchase more of their collateral asset, and redeposit it into their vault. This process creates a leveraged long position on the collateral asset.
• Yield Farming: MAI is used as a stable asset in liquidity pools on various decentralized exchanges (DEXs) and yield aggregators. Users can provide liquidity with MAI to earn trading fees and other rewards.
• Stable Value Storage: As a stablecoin, MAI can be used as a temporary store of value to protect against the price volatility of other cryptocurrencies. ^{[2] [3]}

Integrations and Partnerships

Mai Finance has established integrations with numerous protocols and platforms. Key partners include:

• Blockchains: The protocol first gained traction on Polygon and has since expanded to numerous other chains like Fantom, Avalanche, and Arbitrum. ^[1]
• Decentralized Exchanges: MAI has significant liquidity on DEXs such as QuickSwap, Curve, Balancer, and Uniswap, where it is a common trading pair. ^{[1] [3]}
• Oracles: The protocol uses Chainlink's oracle network for reliable and secure price feeds for its collateral assets. ^[1]
• DeFi Protocols: Integrations with platforms like Aave allow users to deposit interest-bearing aTokens as collateral. Yield aggregators like Beefy Finance offer automated farming strategies involving MAI and QI. ^[1]
• Other Partners: The ecosystem also includes partners for insurance (Insurace) and cross-chain routing (Squid). ^[1]

Risks and Incidents

February 2022 Exploit

In February 2022, the QiDao protocol was impacted by an exploit that targeted its Superfluid vesting contract. The attacker was able to mint a large quantity of QI tokens and subsequently sold them, leading to a sharp decline in the governance token's price. The protocol's core vaults, user collateral, and MAI stablecoins were not directly affected by this incident, but it highlighted the security risks associated with complex smart contract interactions within the broader ecosystem. ^[1]​

January 2026 De-pegging Event

On January 15, 2026, MAI experienced a significant de-pegging event where its value fell to an all-time low of approximately 1.00 peg. Such events demonstrate the peg stability risks inherent in crypto-backed stablecoins during periods of extreme market volatility or stress on the underlying stabilization mechanisms. ^[3]​