Eduardo Argueta currently acts as a Head of Communications in Platinum Q DAO Engineering. He is a skilled writer who first got into blockchain and cryptocurrencies back in 2016 as a means to send money abroad. He enjoys writing about all kinds of topics and industries, more importantly, FinTech and P2P services.
His background on international relations provides him with a deep understanding of worldwide economics and how crypto can improve people’s lives on a global scale.
This is your brisk intro to Q DAO Ecosystem. It has just enough details to entice (or, probably, confuse), so that you can invest some time in googling it a bit more. Feel free to ask me just any whatsoever questions below. Preferably about USDQ though 🙂
Disclaimer: I consult USDQ as an independent advisor and hold smaller amounts of both USDQ and Q DAO. I am pretty sure I know what I’m talking about. Kinda. Moreover, KRWQ – a stablecoin pegged to Korean Won will be attached to Q DAO family. This will not only make a huge impact on the local Korean market but also to the whole Asian region.
Let’s not beat around the bush. If you want to move into cash, the only viable option is “official” exchanges with identity checks and lengthy waiting periods. There’s a definite yearning to do better in this regard.
Tether (USDT) has been a popular alternative. With 2 billion in circulation, you might think that’s it, that’s the best solution. But you’d be wrong. There’s so much controversy about Tether (USDT), legal risks for the company where reserves live (Tether Limited), grayness about the team behind the project… People are genuinely concerned with parking their worth in Tether (USDT).
Platinum Q DAO Engineering team is developing USDQ, a new stablecoin on the block. Just like Tether (USDT), it’s pegged to USD. But it’s backed by Bitcoin and not fiat. And there will be more top 10 cryptocurrencies in the future. Thus, there’s no need to store reserves, do auditing and get exposed to potential problems in dealing with “legacy finance” intermediaries, i.e. banks, regulators and such. What I like most is that traders can just buy the stablecoin at exchanges, with nothing else to do. However, there’s a second level to this ecosystem. If you want to dig deeper, you can actually generate the coin at the platform by collateralizing your Bitcoin. You’ll be interacting with a fully automated system, called CDC (Collateralized Debt Contract), who’ll tell you the “collateralization proportion”.
Currently, you can use only one type of CDC – a USD peg with the 166% collateralization proportion. This means that if you collateralize $166 in Bitcoin, you’ll be able to withdraw $100 in USDQ, i.e. 100 USDQ. In the near future, the project will launch new stablecoins, such as JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ, which will bring forex and cryptocurrencies a step closer. Who knows, maybe in a couple of years people will trade forex using USDQ. And, boy, that’s a big disruption opportunity.
After you’ve withdrawn you USDQ, you can act as you wish. You can turn around and purchase some more Bitcoin with it. This will effectively result in you entering a margin position on Bitcoin. Now, you’ll own $266 in BTC, as opposed to $166 as you did originally.
Then, there are two scenarios.
First, Bitcoin can go up and, say, double in price. This means that your CDC will become collateralized up to 332%. You can either buy another $100 in USDQ and increase your leverage even more (until you’ve bumped into the lowest level of collateralization proportion, i.e. 166%). Or, you can take your profits by closing CDC.
Second, Bitcoin can go down. Here, you have two options. In the first one, you closely monitor prices and whenever your collateralization proportion is going down, you’ll return some of USDQ, getting it back to the permitted level. The second option is that you don’t monitor the situation, then at some point, your CDC hits the critical level (say, 125%) and it liquidates. This results in you getting the collateralized Bitcoin to your wallet, minus Bitcoins you needed to purchase USDQ.
USDQ will furnish to different target audiences. There are long-term investors who want to “take profits off the table”, short-term speculators who need to sleep at some point, or that “mass adoption gang”, i.e. folks who do e-commerce, remittances, real estate and what’s not. All of these stakeholders are only after one thing – a stable unit of exchange.
The ecosystem leverages two tokens – USDQ and Q DAO. Q DAO is a utility and governance token. It floats freely. Q DAO holders vote on proposals for improvements within the system. And they form the last line of defence against USDQ getting de-pegged. In the event of a sudden major fall in Bitcoin prices, provided that nothing else works, the system goes into the “recapitalization mode”. The smart contract starts to sell a portion of the “pooled” holdings for Bitcoin and use those Bitcoins to get back to a good level in the collateralization proportion. In this way, Q DAO holders are incentivized to think hard before they vote on any proposals that might harm or hamper the system.
You can trade USDQ and Q DAO on BTCNext.io, a nice crypto exchange with good fees and customer support. BTCNext.io has become the first business partner for USDQ. The teams work closely together in order to deliver high-quality services and make sure that users questions get answered asap.
Personally, I think that it’s great to see “algorithmic” stablecoins getting more attention in crypto industry. What I like most about the project is that guys want to roll out stablecoins for various other fiats as well (JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ). You might think that nobody needs this stuff at all, but I’m sure that the general public out there would love this feature. If you live in Hong Kong, you’d want to transact in HK USD, right? Well, whenever the mass adoption starts getting its groove on, people will look for stablecoins in HK USD. Anybody already on the market will stand to win over lots of clients.
Maybe you heard about the project MAKER DAO and their DAI?
I want to praise these guys – they are first to create a decentralized stable coin.
We occupy an honorable second place at this race, and basically, we were inspired by the technologies of MAKER`s DAI.
Some Q DAO functionality is similar to MAKER DAO, so we decided to use Maker`s terminology because we do believe – their technologies should be a reference for creating any decentralized stable coins.
Why we are using BTC as collateral? 1) Bitcoin is a most liquid digital asset 2) we have many friends who are big Bitcoin holders (BTC whales) or Bitcoin OTC traders.
We hope even so big guys like Brothers Winklevoss (Cameron Winklevoss and Tyler Winklevoss) will start to use Q DAO. They have a lot of Bitcoins, but they don’t want to sell it. So if they need money – they can pawn their bitcoins to Q DAO and immediately get USDQ.
Why we built Q DAO based on Ether smart contracts, but not Tron (by Justin Sun) and not EOS ( by Daniel Larimer)?
Our genius engineers are love ETHEREUM because of mass adoption of this blockchain, also we respect the approach of Vitalik Buterin (we met him a few times). Maybe in the future, we will consider using TRON or EOS, in case their foundations can provide enough funds to proceed with development.
USDQ is decentralized stablecoin, which uses smart algorithms to offer higher stability and reliability. Fully on-chain and monitored by high-speed AI robots, ecosystem offers reliable defences against malicious acts and attacks. First run in line of fiat-pegs, USDQ is brought by Platinum Q DAO Engineering team, looking to edge together innovative solutions in collateralization, using stabilizing mechanisms and neural networks for high-endurance stablecoins. Soon there will be even more fully backed stable coins: JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ under USDQ brand. Fully anonymous, USDQ breaks limits out of this legacy world.
BTCNEXT Exchange – next generation spot and margin trading platform by the PLATINUM Q DAO ENGINEERING team. It is the first Strategic business partner of USDQ stablecoin that is based on a DAO technology. All pairs will be listed with USDQ. BTCNEXT customer service will be happy to answer all of your questions.
This overview may not be fully exhaustive and does not assess the viability of any project, nor its team legitimacy. Readers should conduct their own due diligence before using or investing in any of the listed Stablecoins. This article represents the author’s opinions only and should not be considered investment advice. All described functionality in the article is still under development, it can be changed/processed. Please follow the updates.