MaiaDao is the first decentralized reserve currency in Metis Andromeda. Started as an OHM fork, MAIA has evolved into so much more. Each MAIA token is backed by a basket of assets (e.g., m.USDC, MAIA-m.USDC LP Tokens etc) in the Maia treasury, giving it an intrinsic value that it cannot fall below. Rather than just being a typical reserve currency, MaiaDAO runs that model in a decentralized way, relying on community governance to make decisions on everything from emissions to future growth strategies. Different strategies will be applied in order to incentivize treasury growth, starting by the selective expansion of the bonds available, as well as APY management and partnerships with other DAOs. Other strategies to be discussed within the DAO involve the current Curve Wars, options and farming.
How MaiaDao works
There are two main strategies for market participants: staking and minting. Stakers stake their MAIA tokens in return for more MAIA tokens, while minters provide LP tokens or m.USDC tokens in exchange for discounted MAIA tokens after a fixed vesting period.
The main benefit for stakers comes from supply growth. The protocol mints new MAIA tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
The main benefit for minters comes from price consistency. Minters commit a capital upfront and are promised a fixed return at a set point in time; that return is given in MAIA tokens and thus the minter’s profit would depend on MAIA price when the minted MAIA matures. Taking this into consideration, minters benefit from a rising or static price for the MAIA token!