What Is Mai (MIMATIC)? How It Works & Where To Buy It

MAI is an algorithmic stablecoin backed by Matic tokens pegged to the dollar. MAI minting only occurs when relevant collateral is approved and then stored in a vault or whenever Anchor is used. This ensures that MAI is a secure cryptocurrency that is backed by tokens that are vested and serving as collateral.

MIMATIC is currently the 409th largest cryptocurrency by market cap.

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How Mai (MIMATIC) Works

MAI minting is only possible if certain conditions are met, such as when Anchor is employed, and the CDR (Collateral to Debt Ratio) must be relevant.

When you trade a stablecoin (DAI, USDC, or USDT can all be used to mint MAI as of September 2021) for MAI, the deposited stablecoins are kept in the treasury as collateral while a new supply of MAI is minted. This process continues until the treasury has produced enough MAI to satisfy the demand. In the meantime, the MAI that you provide will be destroyed during the process of swapping back.

If collateral is not deposited at Mai Finance’s vaults and the collateral to debt ratio (CDR) is less than a certain percentage, then Mai cannot be minted from those vaults. In the future, members of the community will be able to vote on whether or not to alter this percentage.

There will always be sufficient value to back the stablecoins that are minted because the vaults are always over-collateralized by the relevant factor. It is important to keep in mind that even if a liquidator pays off some of their debt, they still run the risk of losing their collateral if the CDR of the vault falls below the predetermined percentage and the community decides to sell off some or all of the items stored inside.

You will be able to release more stable coins if you have a larger proportion of collateral to debt. This will allow you to keep up with the rising value of the collateral. On the other hand, if the value of the collateral were to decrease, then the number of stablecoins that could be issued would decrease as well. This would mean that the CDR would never fall below the threshold.

Mai forms part of the QiDao protocol which is a stablecoin protocol focusing on collateral backing. Mai is one of the accepted tokens and is fully backed by MIMATIC tokens. Users deposit accepted tokens and then get to utilize accepted stablecoins, borrow stablecoins, and are simply required to pay the relevant transaction fees.

Users should refer to the Mai.finance whitepaper for more information.

What Is Mai (MIMATIC) Used For?

Mai (MIMATIC) is a stablecoin backed by MATIC tokens and also acts as a governance token. Users wanting to sell Mai will then receive their original MATIC tokens which were used as collateral backing.

It’s important to recognize that MIMATIC tokens can only be minted if there is sufficient collateral backing. This ensures that the community-governed protocol maintains transparency and that the MIMATIC stablecoin retains value.

Aside from being used in day trading and swing trading, MIMATIC tokens can also be used by traders in other ways. They count on profiting from the price differences. The upside is substantial, but so is the danger.

Where To Buy Mai (MIMATIC)

Mai finance has quickly become a respected name in the cryptocurrency sector, and many individuals believe that MIMATIC stablecoin has the potential to succeed.

Buying or selling MIMATIC can be done on some of the larger decentralized cryptocurrency exchanges. To purchase MIMATIC tokens on an exchange, however, you must first fund your exchange account with MATIC crypto or any other accepted cryptocurrency. Tokens of the MIMATIC cryptocurrency will be added to your digital wallet.

You can purchase, trade, and store tokens at the crypto exchanges listed below:

Before buying tokens on an exchange, users must be fully aware of all of the potential dangers associated with doing so. Token storage on an exchange amounts to a surrender of private key control. Just in case the user’s tokens are stolen in a hack of the exchange.

Tokens are typically stored by their owners in a wallet, either virtual or physical. On the market right now, you can choose from a wide variety of wallets designed specifically for holding tokens. Most individuals choose to use a digital wallet like MetaMask.

FAQs About Mai (MIMATIC)

How long has Mai (MIMATIC) existed?

The Mai Finance project is the DeFi front-end but is QiDao governed. The algorithmic stablecoin was introduced in September 2021 and is soft pegged to the dollar.

What’s controversial about Mai (MIMATIC)?

Multiple types of investors, both large and small, are showing enthusiasm for the decentralized financial market. The industry is expanding and experiencing new forms of innovation, but because of a lack of regulation, there is also considerable room for misuse. Millions of dollars have been lost by customers over the past few years due to these issues.

It is important to consider the validity and plausibility of the information gathered at all times during the evaluation process. Before you invest in any cryptocurrency, you should do as much research as possible.

Let’s take a look at the biggest controversy surrounding Mai (MIMATIC).

Stablecoin competition – There are a number of stablecoins on the market but the most popular stablecoins include USDT and USDC. Stablecoins can be classified into those that are backed by fiat assets and those that are algorithmic stablecoins.
MIMATIC is an algorithmic stablecoin that has managed to garner a large amount of attention in the crypto space. However, there is a distinct lack of trust when it comes to algorithmic stablecoins. Many individuals were severely affected by the collapse of UST (once the 4th largest stablecoin) and this is what makes it incredibly difficult for emerging algorithmic stablecoins to achieve mass adoption.
One of the major reasons that people aren’t considering algorithmic stablecoins over USDC and USDT is because they lack the transparency that can more often be found in the current major stablecoins. Individuals are relatively scared of opting for another stablecoin when they feel that it lacks transparency.

How many Mai (MIMATIC) tokens are there?

At the time of writing, Mai (MIMATIC) has a circulating supply of 54,947,528

The total supply of Mai (MIMATIC) is 297,544,613.

The max supply of Mai (MIMATIC) is infinite.

Can Mai (MIMATIC) be mined?

MIMATIC can’t be mined. The MIMATIC token can only be minted if there is sufficient collateral backing that is supporting the creation of the token. Currently accepted collateral backing for MIMATIC tokens are MATIC tokens.

Avoid visiting websites that advertise to their users that they can help them mine MIMATIC tokens. Visitors to these websites are being misled, and they should exercise extreme caution before proceeding with anything they have read on these websites.

On some decentralized platforms, users have a choice between multiple ways to invest their cryptocurrency, each of which carries its own risk and reward profile. When users have digital wallets connected to their accounts, the platform streamlines their ability to engage in farming, staking, and LPs.

What is the market cap of Mai (MIMATIC)?

The market cap of Mai (MIMATIC) is the total tokens in circulation multiplied by the current MIMATIC price.

DAO Maker Market Cap = 54,947,528 x $1 = $54 million (409th largest market cap).

The market cap is continuously fluctuating as the market changes.

Biggest Competitors Of Mai (MIMATIC)

Several stablecoins are competing to garner adoption and exposure. Many consider the stablecoin sector to be both oversaturated and monopolized. The two largest stablecoins remain USDT and USDC – both of these tokens make more than 85% of all the money invested in stablecoins.

The biggest competitors of Mai (MIMATIC) are:

USDT
USDC
BUSD

What Are The Future Plans For Mai (MIMATIC)?

MIMATIC is currently one of the smaller stablecoins and has a relatively tiny market cap in comparison to its competitors.

The Mai Finance team will work relentlessly to create more exposure and drive growth for the stablecoin. Additionally, the team will need to work hard to create transparency and assure users that their algorithmic stablecoin can indeed be trusted.

Pros And Cons Of Mai (MIMATIC)

Pros

Has maintained its peg – Even though market conditions have been extremely volatile, the MIMATIC stablecoin has been successful in maintaining its peg. Many people have been impressed by how well the stablecoin has performed and are eager to see what the future holds it.

Cons

Slow growth – The MIMATIC stablecoin hasn’t managed to turn heads in the crypto market and has experienced relatively slow growth since its launch. Many believe it won’t be able to compete with some of the larger names such as USDT and USDC.
Algorithmic stablecoin stigma – There’s a stigma attached to algorithmic stablecoins and many individuals are hesitant to purchase any emerging stablecoins after the UST saga. MIMATIC will continue to have a difficult time trying to gain adoption and exposure in the crypto space because of this stigma.