USDQ/KRWQ and Q DAO Challenge Status Quo in Stablecoins. Trade USDQ and on BTCNEXT with Look for New Coins KRWQ, CNYQ and JPYQ in Coming Months
Eunchae Jang has extensive experience in IT support roles. She currently works as an IT Support Manager at Platinum Q DAO Engineering. Eunchae has been effective in streamlining communications between customers and development teams, helping identify and prioritize bottlenecks and challenges. She regularly participates in major conferences and meetups, always ready to showcase the latest achievements by Platinum Q DAO Engineering and partnering projects.
For the past 3 years, Platinum Company became the biggest Listing Broker in the world: we have listed more than 300 projects on Top Exchanges and supported Market Making for more than 70 projects.
Platinum STO/ICO fundraising dashboard and tokenization platform are now installed to 30+ projects, and it has helped them to raise more $350,000,000.
In Platinum Q DAO Engineering we are creating a lot of cool stuff.
BTCNEXT – most secure, compliance and regulated exchange, built by traders for traders;
Decentralized stablecoins KRWQ, USDQ, JPYQ, CNYW [we are second Stablecoins DAO after Maker DAO]
Read this article and start learning about a decentralization wave, currently disrupting stablecoins.
Right now, PLATINUM Q DAO ENGINEERING, a major blockchain development outlet, is helping to develop a new stablecoins, called USDQ/KRWQ. It’s an ERC20 token with a soft peg to 1 USD. It’s easy to use this token like any other ERC20 asset out there. Right now it trades on BTCNEXT with plans to make it available on other crypto exchanges as well. The difference is that USDQ/KRWQ features a stable price, which means that it’s worth $1 for USDQ today, will be worth the same tomorrow and in a month.
In contrast to centralized offerings on the market, like Tether, it’s completely decentralized with all of its components living on the blockchain. No authority will ever able to require that it stops its operations. Transactions can be made in any amounts, all over the world, with pretty fast speed and without huge fees as they used the Ethereum ecosystem.
I think that the architecture of this ecosystem is amazing. It’s clever and it works smoothly. And the fact that all the components work together successfully – without any centralized controller – makes you think that we are on the brink of a new era in economy, governance, and society as we know it.
The economy that’s fully decentralized. In this article, I will explain to anybody who’s willing to spend around 10 minutes the ways in which USDQ/KRWQ brings trust and reliability.
The development team is PLATINUM Q DAO ENGINEERING which boasts over 200 blockchain developers, architects, and designers. Together, they are working to deliver sustainability and ease of use. USDQ/KRWQ collateralize Bitcoin and the team bases all of the system’s operations on top of the Bitcoin blockchain, which assures additional reliability and scalability.
Reasons to Call USDQ/KRWQ a Paradigm Shift
If you are a newcomer to the crypto world, you might be surprised that all of these statements below are completely true with regard to USDQ/KRWQ:
- USDQ has a soft peg to $1 or and KRWQ to Korean Won, which means that its prices are almost always equal, deviating by just a couple of cents from time to time
- People can transfer USDQ or KRWQ tokens [which are ERC20 tokens] across the globe, without any huge fees as it used Ethereum ecosystem or restrictions whatsoever
- Anybody can use these tokens, provided that they have a smartphone or PC, Internet connection and a free Ethereum wallet installed
- Transfers get processed without any intermediary in place [like PayPal]
- USDQ/KRWQ is not controlled by a CEO or a company, it’s fully decentralized
- No government can shut down the system or disrupt its operations
- In this way, USDQ/KRWQ acts as an enabler for several capabilities that just weren’t possible before the advent of the blockchain.
And transactions are for trade, right? So, let’s make it clear here – I’ve heard from so many merchants and entrepreneurs of all types that they would love to use crypto in their operations, but it’s Goddamn volatile.
Well, USDQ/KRWQ isn’t. It’s as stable as USD. So, the next time anybody says to you that crypto is too volatile, you can “not-so-fast” them then and there. It’s easy for a merchant to receive a payment in USDQ/KRWQ for, say, furniture, ship the same to the customer and record transactions in their accounting software.
And customers, on the other side, don’t have to stress over the possibility that the crypto they’ve spent today may moon to 100K tomorrow. It won’t. It’s a USD or KRW and other stable fiat currency, but on the blockchain.
While both merchants and customers enjoy the perks that the cryptocurrencies offer, they don’t have to deal with the volatility coins are notorious for.
It’s true that cryptocurrencies are gradually getting embedded in the economy all around us. For instance, today, merchants can install the software and hook up to BitPay, a payment processor. This enables merchants to receive payments in crypto and, thus, offer more payment options to their customers.
Though it’s a convenient option, it’s the same business as usual. BitPay is a centralized agent who can shut you out at any moment and at their own discretion.
As compared, when merchants use USDQ/KRWQ, they transact directly with the records being stored on the blockchain. There’s just no need for any third-party intermediaries to “help” businesses do business.
Of course, some assistance might be needed with installing new software, training employees or maintaining the system, but there are no intermediaries on a permanent basis. Nobody will ever be able to say that a particular merchant can’t connect to the system.
I bet that some of you might be thinking that USDQ/KRWQ is too late on the market. There’s already coins like Tether, Gemini, and others. But the problem with all of those tokens is that they are heavily centralized.
The latest events with regard to Tether give you a pretty good idea that centralized systems will always try to do something “funny” and tell you how to spend your money and live your life. I am not a communist, and they are not innately evil. It’s just how it goes whenever you see centralization expanding over a system.
USDQ/KRWQ is a new breed of stablecoins. It’s completely decentralized. All of its components reside on the blockchain. There’s a minimum level of centralization.
USDQ/KRWQ: How Does It Work?
USDQ/KRWQ effectively leverages the incentives for market participants, encouraging them to help the system sustain the price peg of USDQ/KRWQ to 1 USD/KRW. I think it’s great that this system has only one goal and everything here is built around reaching this goal.
Whenever USDQ’s price gets higher than 1 USD , the economic incentives will kick in, convincing people to take actions in order to help the price to go down. And in the opposite case, market participants are triggered to buy the coin, helping it to grow in price. I think you might be asking yourself “Why would anybody help the system?”
Well, it’s all about the money – they are getting financial rewards – nor from any particular company or individual, but from the market itself. This makes it possible for USDQ/KRWQ to oscillate around the $1 peg consistently. Whenever it veers too far away, the economic incentives always kick in, prodding it back toward the peg. When I started learning about architectures like that, it sounded like a magic thing. But it works pretty well in reality.
And now let’s actually look into the mechanisms that work here and figure out how they operate.
USDQ/KRWQ: In Nutshell
At the core, USDQ/KRWQ is just a loan, created by “pawning” Bitcoin. Any person who has some Bitcoin and a few technical skills can access the Q DAO system and generate USDQ/KRWQ.
But, importantly, 99% of users will never need to either access the Q DAO system or learn the mechanics behind it. I think that all those people will just buy the token on exchanges – both centralized and decentralized. And the decentralized exchanges can’t use the fiat, so the only option for them is to use stablecoins. Like USDQ/KRWQ.
I hear from lots of folks in finance and development worlds that coins like USDQ/KRWQ will never catch on – because they are too nerdy because they are too complex. Ordinary people don’t want to try and understand how these highly complicated systems work.
Well, I agree with that! But what those people are missing is the fact that ordinary users won’t actually need to understand the inner workings of the system. Whenever they need a stablecoin, they’ll be able to buy it, right there on their favorite exchange.
At the same time, if you are willing to take the extra mile and understand how the system works, you can do this. It’s not rocket science. Thought it can be hard to understand the mechanics at first, if you look at all components together, you’ll see the big picture behind.
And now let’s take a deep dive into what makes the system tick!
USDQ/KRWQ: Generation Procedure
So, USDQ/KRWQ is just a loan for your BTC. You “pawn” (aka “collateralize”) some of your Bitcoin within the smart contract here and, in exchange, you get USDQ/KRWQ.
During the generation procedure, the system records the receipt of your Bitcoins and generates the respective amount of USDQ/KRWQ units. It transfers them to you. So, the system can’t generate USDQ/KRWQ tokens just because somebody wants it to. This is how it’s different from conventional national economies where federal banks print money whenever they want to.
So, if anybody – for instance, a system’s developer – wants to get some USDQ/KRWQ, they need to interact with the smart contract. And the smart contract will need some of that tasty Bitcoins before it can create the so-called “Collateralized Debt Position”. Nobody can just ask the smart contract to print some money.
And since USDQ/KRWQ is a standard ERC20 token, you are free to use it the way you see fit. Spend it. Send it to your friend. Give it to me. Anything is possible.
Why would anyone want to spend time generating USDQ/KRWQ? You can buy it on an exchange, right?
Well, that’s exactly the point. 99% of users will never invest time and effort into actually generating USDQ/KRWQ at the Q DAO Platform. It’ll always be easier for them to just buy and sell it on the exchanges.
But, for certain groups of users, generating USDQ/KRWQ makes pretty good sense:
- getting a loan in a stable currency is made very easy – you just buy Bitcoin and get a loan here
- margin trading works well too. Let’s imagine that you believe that BTC will grow. You lock BTC into the smart contract and generate USDQ/KRWQ. Then you use that USDQ/KRWQ to buy even more BTC. Now, you have 1.6x of your original position. This is margin trading. Importantly, you are doing it all on your own. There are no banks, auditors and generally people who might decide whether you can or can’t do this.
- Let’s imagine that you see that USDQ/KRWQ is getting higher than USD KRW. Say, by 2-3 cents. At that very moment, you can go to the platform, generate USDQ/KRWQ and immediately sell the same USDQ/KRWQ for a higher price. In this way, you are basically getting a free profit. That’s how the system incentivizes market participants to increase the token’s supply whenever it goes above the $1 or 1 KRW peg.
I am convinced that the cumulative effect of these three use cases will bring the long-term sustainability for the platform in the years to come, making sure that USDQ/KRWQ is consistently generated in the quantities needed to satisfy the currently existing demand.
How Does the System Ensure the Peg?
What I like most is that there are no decision-makers, banks or anybody. It’s all driven by pure economic incentives and smart contracts.
So, as we saw above, whenever USDQ/KRWQ goes above USD, people can buy USDQ/KRWQ from the system at 1 USD and sell it at 1.05 USD, making 5 cents in profit. Free money.
And, whenever the price goes below, another mechanism kicks in. It stipulates that CDP owners – the ones who got the loans – can repay the debts they own at the cheaper rate! Now, it’s not going to be extremely cheaper, but just 1-5%. But, it’s the financial players we are talking about here. They might have a couple of millions sitting in the system. 5% from 1 million is a strong enough incentive to press a couple of buttons, right?
Let’s look at an example. You collateralized 1K in Bitcoin. You took out a loan for 600 USDQ/KRWQ. And now, in order to get your collateral back, you’ll need to pay back the debt amount, i.e. 600 USDQ/KRWQ. And whenever you repay it, USDQ/KRWQ is going to get burned. On the example just of USDQ we can see the floating changes
So, let’s say that USDQ currently floats at 0.95 USD, i.e. 5 cents below the peg. You can actually buy USDQ at this current price, and then immediately repay it to the system. You’ll get a pretty good cut if your loa is big enough. So, 0.95 x 500 = 475. Since you owed 500, that means a 5% discount. And for 1 million, it’ll be 950,000. So, you just got 50K in cash. Who cares, what percentage that is. 50K is a pretty good amount, right? And it’s free money.
I am sure that you understand that whenever the demand grows, the price grows too. And whenever the supply grows, the price goes down. I really like how smoothly the very laws of economics are embedded within the system.
The system collateralizes Bitcoin. But Bitcoin is very volatile. Doesn’t it make the system volatile too?
The USDQ/KRWQ system is based on the over-collateralization, which means that for $1000 in BTC, you’ll be able to generate only $660 in USDQ/KRWQ. This protects the system against unexpected moves in the collateral assets. So, unless BTC goes to 0 and doesn’t change its price very fast [like 30% in 1 minute], the system’s gonna be stable.
By the way, we are planning to collateralize other digital currencies in the future, i.e. TOP-10 cryptos. Doing this, we’ll be able to serve much more crypto enthusiasts, who doesn’t want to convert from their favorite assets, but also want to have the capabilities for collateralization.
And now let’s look into this question in more detail.
The CDPs created by the system are characterized by a varying level of indebtedness. As I said above, you can withdraw only 66% of your collateral’s worth. However, we don’t expect that every CDP holder will draw the full available amount of USDQ/KRWQ. The majority of them will draw only 10%, 30% or something like that.
I like it that the system enables the smart contracts to automatically change the levels of debt whenever the price of BTC changes relative to USD. If BTC goes up, your loan becomes less risky. If BTC goes down, you have a riskier loan on your hands.
And you can rank all the loans in terms of their riskiness levels.
The maximum riskiness level is 66%. And as BTC goes down, the risk grows. Whenever this level is crossed, any USDQ/KRWQ holder can pay off the debt, incurred by the CDP, and make a profit. This results in the destruction of USDQ/KRWQ within the system, termination of the CDP and the liquidation penalty being imposed on the CDP owner.
I think that some of the details in regard to these processes can be tricky. But, overall, the high-level concepts aren’t that hard to understand. There are rational actors – ordinary market participants – who use the system in order to obtain some financial benefits.
They are incentivized to remove the riskiest loans from the system so that the system doesn’t go overboard with the risky liabilities on its books. If any particular CDP owner doesn’t care about the riskiness of his debt, he’ll get a penalty.
As I said before nobody expects that ordinary user will get into this thing. It’s big financial players, developers and blockchain investors who will deal in CDPs. So, they wouldn’t want to get exposed to excessively high risk.
That’s why they will be OK with repaying some of the debt in order to reduce the risk profile before it goes over the 66% level. The diligent CDP owners will keep track of the things, while the negligent ones will not – and they will get penalized, making them leave the ecosystem for good.
The architecture already enables USDQ/KRWQ with the future plans to roll out stablecoins pegged to other fiats, like CNYQ and JPYQ to sustain any falling prices in the collateral asset. Even if the fall is going to be continued for a long time and even if it’s going to be big.
How Do System Learn BTC Prices, If It’s Decentralized?
I think that this is a pretty smart question. And this very vulnerability might pose the biggest threat to the system’s sustainability.
It’s true that the Q DAO platform needs to source the information somewhere, but it’s highly dangerous to trust a single actor as it will make the system centralized. So, the system leverages several oracles who simultaneously provide the same data. This means that even if 49% of the oracles collude and furnish the bad data, the other oracles will keep furnishing correct data and there won’t be any trouble. In addition, the system limits the step of change for any single block, which prevents a possible attack.
I am really impressed by the fact that the Q DAO platform takes so much effort to assure security. So, there’s another layer for security – it’s called “Global Settlement”. It activates in case of a massive attack on the system.
All the loans are unwound and all collateral assets are returned to CDP owners. The decision as to whether these options should get activated is taken by Q DAO holders [Q DAO is the second token within the ecosystem, acting as an internal governance coin].
Why Do System Have 2 Coins? What’s the Purpose of Q DAO?
The second token, called Q DAO, is used primarily for the following two purposes.
The first use case is to enable holders to vote for proposals that will institute changes within the system. In this way, the system truly operates as a DAO [decentralized autonomous organization]. In addition, Q DAO holders can always shut down the system via the Emergency Shutdown procedure which I described above.
The second use case is about making a profit for the holders. The CDP holders who take out loans need to pay some small fee whenever they repay their debts. That fee is payable only in Q DAO and it gets burned immediately upon the repayment to the system.
Thus, we are seeing the supply getting reduced while the demand staying the same. This always leads to growth in the prices. In this way, the system incentivizes the Q DAO holders to consider all proposals in a diligent manner and take all actions in order to assure the successful journey.
So, I bet you are thinking right now that the system might run out of the tokens at some point, right? The point is that each Q DAO is divisible up to 18 decimal places. That’s a lot of zeros there. So, even if only one Q DAO circulates, the system will still work OK.
Why Bitcoin as Collateral Asset?
Bitcoin is the most logical choice for a collateral asset for a system like this, cause it is the most popular cryptocurrency at the moment.
I know that the team plans to roll out other collateral assets in the future, enabling even more users to use their digital currencies to draw loans in stablecoins. As long as the system can hook up with oracles who’ll supply price data on the asset, it’s possible to embed any asset you can think of.
Why USD as Peg, for USDQ?
USD is the most widely used currency in the “legacy finance world”. So, it’s clear why the team has chosen it and not another currency. Meanwhile, we are already using both USDQ and KRWQ, experimenting with other fiats in addition to USD and KRW. In the future, we plan to roll out other pegs as well – CNYQ, JPYQ, and others. Just imagine how many users the system can win through this strategy.
USDQ/KRWQ will continuously hold its soft peg to USD/KRW. It’s this peg that’ll prove that system’s working fine. The longer it does, the more trust it’ll win from users.
99% of users will never interact with the system directly, but they’ll just buy USDQ/KRWQ tokens at exchanges. They’ll guide their decisions by trust in the system. However, I am sure that anybody who has time and desire can understand the inner workings of the system since it’s completely open source with tons of explanations and code available in Google.
So, as the name of this article says, I believe that USDQ/KRWQ is a game changer. Now, anybody – really anybody – can move value, without any limitations – across borders, as fast as transactions are confirmations in the Bitcoin network, in any amount and without any restrictions by governments. This will bring a paradigm shift in e-commerce and then in the overall economy as we know it. All of the system’s components live on the blockchain, so nobody can shut it down.
USDQ/KRWQ is a solution that wouldn’t be able to exist without the blockchain behind it. It shows the true value of the blockchain-empowered solutions that will disrupt this world in the coming years.
I am sure that we’ll be hearing a lot about the USDQ/KRWQ stablecoin when it starts going mainstream. Importantly, the more adoption we see, the higher Q DAO, the internal governance token, will be in price.
About PLATINUM Q DAO ENGINEERING
USDQ is brought by the PLATINUM Q DAO ENGINEERING team, as a measure to develop a high-endurance stable coin that uses innovative solutions in collateralization, price stabilization mechanisms, and oracles.
Visit for latest updates about USDQ [and KRWQ – soon]
Visit now Official Telegram chat in Korean or in English to learn about the latest development hacks.
# Q DAO diary [ dev.day: 385, round: 1, 9 days until ieo#2, Q DAO price: $2.55]
# BTCNEXT diary [dev.day:278, daily volume ~$13100k, 26 coins listed, IEO count “3”, BNX price $0.68]