Ms. Julia Della Scala is a talented journalist with over 20 years in writing, marketing management and business development. Active in the DLT space, she has assisted dozens of startups in their journeys to investigate and initiate successful blockchain-powered solutions, enabling to streamline processes, tokenize assets and draw contributors globally.
Julia works as a Business Development Leader for the United States at PLATINUM Q DAO ENGINEERING, where she helps market
USDQ, a fully decentralized stablecoin that simplifies Bitcoin collateralization for effective margin trading and hedging. USDQ is just the first run at Q DAO with new coins in the works – JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ. She holds two degrees – BS in Accounting from UC San Diego and BA in Social Science and Philosophy from Waseda University – helping her find a balance between financials and community awareness.
The cryptocurrency industry, by now, has come to know that heavy price fluctuations are actually preventing any of them to actually be used as a currency. Digital currency may be used as an exchange of value but if it does not function as an efficient store-of-value it can never be fully integrated into people’s daily lives.
This is, in a nutshell, is how
USDQ works. Although there are some complexities in the real application, we know these ideas and principles are the ones that provide USDQ its properties to become a stablecoin.
Since its creation, the cryptocurrency market has progressed significantly. However, there are some important issues that kill the idea of the adoption of real-world currency. The main problem being the fluctuation cryptocurrencies face in days, hours, even minutes. Just consider EUR or USD changing from 3% to 17% while you are trying to buy food or pay a loan. You could have enough money to buy groceries at $500, then need $200 additional when paying for the same food.
Crypto Market is a Roller Coaster
Maybe the most remarkable year for cryptocurrency was 2017 because of the popularity boost during the end of the year’s bull run. Many people joined the crypto space due to fear-of-missing-out, the hype was incredible, the domino effect took place with investors buying when cryptocurrencies skyrocketed and others only boosted the price even more. But, like gravity, what goes up must come down. Investors became wary of the prices and shortly after buying their assets the market fell rapidly. Most of these investors didn’t know what they were dealing with. But even so, there were some investors, a small percentage of them that got into cryptocurrency due to its technological fundamentals. However, they are not enough to change the current pure-hype investment sentiment that has been around for a while. Imagine a cryptocurrency similar to a stock, that offers guaranteed steady returns, has minimal risk of losing your initial investment and is pegged to be stable in relation to the U.S. dollar. Also, those who are in due to the highs and lows and the volatility in the crypto market can participate and have high-risk for a higher return.
USDQ is a financial cryptocurrency project in development by Platinum Q DAO ENGINEERING. We want to offer an affordable solution to the high volatility that crypto markets face with the stablecoin USDQ. A stablecoin pegged to the U.S. dollar and backed with bitcoin as collateral. The main purpose stablecoins have is they help maintain a fixed rate compared to the asset they are pegged to. For example, in this case, one USDQ stable coin is equal to one USD. Using a cryptocurrency pegged to a fiat currency opens new business opportunities that are too complex to execute due to crypto volatility. USDQ does not only provides stability with the US dollar but their platform development in Ethereum’s blockchain also creates an environment of decentralization and transparency.
How’s the Stability Maintained?
USDQ will center its stability and was created to be pegged to the US dollar with the use of smart contracts. Through Ethereum’s blockchain usage, smart contracts would be able to maintain the fixed rate measuring the bitcoin or top 10 other cryptocurrency deposit collateral with the issuance of USDQ. A deposit measured by the smart contract would be used as collateral for the loan. Once the bitcoin funds are deposited by a user, the user can then obtain an equivalent to USD value in USDQ that they decide to borrow. With USDQ, users would be able to do anything they want, just like any other cryptocurrency. They can trade with USDQ as the main pair, use it as a personal savings account or even use it for payments. There would not be restrictions using USDQ. It will be used in the same way you use any other cryptocurrencies.
Because its fixed rate with the US dollar, the amount you will always owe will be the same plus an interest rate. For example, let’s assume you made a deposit of 1 BTC (at moment of writing, BTC is worth $5000 USD) into a Crypto Asset Control System wallet and borrow 3012 USDQ: You have to pay 3012 USDQ back plus any accumulated interest, to get back your 1 BTC held as collateral. At the moment, there some other project where you are able to borrow other non-stable coins, however, the idea of this solution is to avoid the current market volatility, because with the current one you may end up owing twice or triple compared to what you borrowed. Let’s consider the following scenario you deposited as a collateral 100 AssetCoins, and then minted 1000 NonStableCoin (NSC) to be borrowed at the current market price of $2 USD. Let’s say the price of NSC drops to $1 USD when you have to repay the debt, you now owe 2000 NSC plus the amount to be paid in interest. For these cases, we want investors to benefit using USDQ because what they owe will always be certain and clear.
There are other scenarios to consider as well. Imagine you want to invest in the latest high-risk PerfectICO (PICO) however you are afraid of sending your crypto and lose it all. In order to protect yourself, you could deposit BTC into a Crypto Asset Control System wallet, mint the amount in USDQ, and then send those USDQ to PICO. Imagine PICO crashes and you want to cut the losses, you could sell PICO back into USDQ, but now you only have 80% worth of USDQ. There is something that can be done. Your BTC is still safe in a loan. You would have to find a way to recover the 20% that you lost plus the loan interest, however you haven’t lost your BTC because is possible that at the same time that you are waiting for your ICO to increase in value, the price of BTC has pumped, now your BTC worths more than your initial investment. Enough amount to pay off your losses in PICO.
Just consider that instead of you using USDQ you send the BTC to PICO, most likely you had lost almost all of it. Using USDQ and the option to pay with that investment method can be the difference between doubling profits or doubling loses. As in all type of investment, there are risks, you have to do your own research and see which strategies best apply to your investment.
The BTC given as collateral can only be withdrawn once the user pays back the same amount of USDQ he minted at the beginning of the transaction.
Nevertheless, getting the loan to acquire USDQ stable coins also accumulates interest, so the client must pay back the USDQ stable coins he obtained and in addition pay the respective interest to recover their deposit. Deposit funds should dependably hold higher security esteem than the estimation of obligation the client has. Just to keep in mind, BTC deposits that hold less capital to pay in insurance than the capital they owe debtors may be in danger to be exchanged and sold off.
USDQ is a real stablecoin because of the usage of Target Rate Feedback Mechanism (TRFM). The TRFM is a programmed instrument that the USDQ Stablecoin System will use to maintain stability. The Target Price of 1 USDQ is $1 USD, so the Target Rate software decides the required difference in cost of USDQ after some time so as to achieve the Target Price amid a market swing. In any case, when the TRFM draws in, the fixed peg proportion of 1 USDQ to $1 USD breaks, however, it is required so as to recover the cost of USDQ to where it should be. For instance, if the Target Price of USDQ is underneath $1 USD, the TRFM increments with the goal that it can drive the cost of USDQ back up. This causes the cost of USDQ to build, which at that point causes the age of USDQ through loans to turn out to be increasingly profitable.
At the same time, this likewise causes clients who hold USDQ to maintain a profit, prompting an expansion in popularity for USDQ. The mix of expanded interest for the coin causes a scaled down supply of USDQ in the market, as clients bring down the supply of USDQ as they get it through loans and purchase from the market, they cause the cost of USDQ to be pushed back up to its Target Price.
The TRFM and Target Rate are controlled by free market activity elements. Be that as it may, USDQ users can likewise set the Sensitivity Parameter of the TRFM. The Sensitivity Parameter decides how gentle or extreme the reaction of the Target Rate Feedback Mechanism to move the Target Price of USDQ when it has veered off from where it should be. For instance, if the Sensitivity Parameter is characterized as “10% in 15 minutes” by users voters, at that point the Target Rate can’t change the cost of the market by over 10% inside a range of 15 minutes. This implies the greatest hourly change in the cost of USDQ that the TRFM can make is 40% from where USDQ was toward the start of great importance. This limitation guarantees that there is sufficient time to trigger a Global Resolution if an aggressor oversees a greater part of the prophets. The Sensitivity Parameter is set by Users Voters so that if the oracles were ever hacked, the community Voters would be capable could set the Sensitivity Parameter as low as conceivable to restrain the speed of which the cost of USDQ could change, which would give the system enough time to trigger a Global Resolution. Voting happens with the help of the Q DAO community and use of the Q DAO tokens which are used mainly for the governance of the entire USDQ platform and guarantees its decentralization.
A Global Resolution is a final retreat procedure to ensure the Target Price to the holders of USDQ. At the point when a Global Resolution is activated, it closes down the framework. This implies USDQ holders and loan clients get the net estimation of advantages that they are qualified for. The procedure is completely decentralized and user voters can leverage their Q DAO tokens to oversee the entrance to it on account of a crisis.
USDQ is an ERC20 token and can be stored on any ERC20-compatible wallet, like
MyEtherWallet or Mist. Users can now trade USDQ and Q DAO on BTCNext.io, a popular crypto exchange. It’s convenient that all trading pairs at BTCNext.io will be listed with USDQ as the basic currency.
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?
- Bitcoin is the most liquid digital asset.
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 Ethereum 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 business 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 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 the 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. It is the first Strategic business partner of USDQ stablecoin that is based on a Q DAO technology. All pairs will be listed with USDQ. BTCNEXT customer service will be happy to answer all of your questions.
Julia values readers’ opinions and welcomes interested parties to continue the talk in her personal
LinkedIn. She sees enormous potential in Q DAO and USDQ. In particular, bright future awaits e-commerce players who’ll win from fast execution, minimum fees, and border-blind transactions. PLATINUM Q DAO ENGINEERING works to help startups win from STOs, leveraging highly customizable offerings in
stand-alone fundraising platforms, as well as
integrated fundraising ecosystems. Connect with the team on
LinkedIn and order a free consultation to clarify any pressing 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.
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