Inside Platinum Q DAO’s Secret Hacking Lab in Taiwan: What should You know about USDQ KRWQ CNYQ JPYQ stablecoins?
I-Chan Huang is a highly experienced consultant for blockchain technologies and decentralized ecosystems. He currently acts as an advisor in Q DAO project. Products of the project are unique fully decentralized stablecoins (USDQ, CNYQ, JPYQ, KRWQ) backed by Bitcoin.
I-Chan has two prestigious degrees – MA of Economics, SOAS University of London, and BA of Journalism, NCCU, Taiwan. He leverages +5Y in IT, Data Science, and peacekeeping operation for the United Nations, delivering effective Fintech startups and sustainable development goals (SDG) consulting.
Working closely with Platinum Engineering he is managing STO for Eliconn PTE Ltd. which has close relation with FOXCONN Group.
I-Chan regularly publishes in major IT-related and economic-related outlets in HK, Taiwan, and Mainland China. He has a perfect command of Chinese, English, and Thai.
Platinum Engineering’s Q DAO ecosystem is one of the most interesting projects that has not been widely known in the crypto space. However, after you read this article, more people would be aware of how this is one of the coins that will bring great profit to its investors.
Q DAO is a cryptocurrency connected to a smart contract platform that works with USDQ coin. They both look to become a hedge ecosystem that helps traders keep stability in reference to other coins currently on the market. Platinum Engineering provides a fully transparent system with stable coins running on Ethereum’s blockchain.
What is USDQ coin?
USDQ is a dollar fixed stable cryptocurrency, mostly used for purposes outside of the blockchain investment idea. Saving, payments, hedging are some of the examples where USDQ can be effectively used. USDQ stays always inside the blockchain chain but also provides the stability that other cryptocurrencies lack.
The idea of a stable coin is very simple, it’s a cryptocurrency whose price (or value) is equal to real-world currency. Unlike other coins (BTC or ETH), this stable coin volatility hopes to remain equal to zero.
The most famous example of a stable coin is Tether (USDT). This is a currency issued by the Omni Layer Protocol on Bitcoin’s blockchain. Its value depends on the dollar reserves that the Tether Limited corporation has on its bank accounts. The coin is centralized because they are the only ones that can issue more coins. Using tether, trades can maneuver more effective their profits without actually using dollars. Current cryptocurrencies are very dangerous when it comes to using them as collateral or payment way due to their volatility. Stablecoins use includes the mitigation of market risk of crypto-assets to prevent great fluctuations in value.
These coins also benefit exchanges because it opens the door to fiat value trading without having to actually use any fiat or verify users for fiat trading.
The Platinum Engineering team launched and built a decentralized, inspectable and completely transparent stable coin ecosystem that works as a trustworthy bitcoin-backed currency (other top 10 cryptocurrencies will be added in a near future) and a more secure option to other stable crypto projects like Tether`s USDT, Gemini`s GUSD, Circle`s USDC, True TUSD, Bitshares’ BitUSD etc . USDQ is the second decentralized stablecoin (first – is MAKER DAO`s DAI) that runs on the Ethereum blockchain and currently accepts Bitcoin as collateral, plans are that other top 10 cryptocurrencies will be added soon.
A very important part of the stable coin ecosystem is a Q DAO token. While USDQ is only used for crypto-backed loans, savings and payment, Q DAO utility token also work as governance token and as a recapitalization token to the ecosystem itself.
Both tokens were created by the PLATINUM ENGINEERING team but they are not the issuers of such coins, the ecosystem’s fully decentralized governance gives the users total control over the token issuance.
How do they work?
Similar to Tether, USDQ is a collateral backed asset soft-pegged to the US dollar. Nevertheless, USDQ does not have a centralized party that maintains the fluctuability near zero. This one works in combination with the Q DAO token, a more stable coin that other in the market due to the way their value is calculated. Q DAO token does not have any fluctuation restriction, that’s why it’s role very important in the ecosystem. The users can easily generate USDQ by providing a BTC backed amount depending on the amount of USDQ they want to issue. Those funds that were converted can easily be stored in stable value with USDQ. When they consider it necessary, USDQ holders can burn the USDQ to obtain the BTC backed amount they gave at the beginning of the process.
USDQ ratio will always aim to be 1:1 with the US dollar. This will be due to the use of smart contracts that will keep track of the amount of coin on circulation and the amount of BTC backed as a collateral. In case of a recapitalization, Q DAO token will bring liquidy to the currency thus maintaining the ratio to 1:1. Q DAO tokens are used to pay fees or interest on the BTC backed loans created in the USDQ system. The value of these currencies is proportional to each other meaning that if the demand for USDQ and BTC backed loans increases, the demand for Q DAO should also increase. Moreover, when the stability or interest fees are paid using the Q DAO token, these tokens are destroyed forever. The total supply for Q DAO tokens decreases, thus increasing the token value at the same time.
There are multiple markets that could benefit from the use of USDQ, but the main ones could be financial markets, gambling markets, transparent accounting systems, and international trade.
The main problem to solve is reducing the volatility crypto trades face, and that’s exactly what USDQ does. With the help of smart contracts, users can generate their own tokens, rather than going to a centralized party for them. Each and every single USDQ is backed with an amount of BTC safely stored with wallets which are connected to the smart contract platform. Everyone with an amount of BTC to backed their loan can lock them up as collateral an issue USDQ. Now users can set long positions on USDQ and keep those funds stable without worrying about losing their money through the swings of the crypto market.
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 basis currency.
To learn more about the project, please visit https://platinum.fund/usdq/ where you can download the whitepaper and read more about USDQ.
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 Jihan Wu (Jihan is one of the co-founders of Bitmain, the world’s largest crypto mining company) 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 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 line of fiat-pegs, USDQ is brought by PLATINUM ENGINEERING Team, looking to edge together innovative solutions in collateralization, using stabilizing mechanisms and neural networks for high-endurance stablecoins. 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 DAO technology. All pairs will be listed with USDQ. BTCNEXT customer service will be happy to answer all of your questions.
I-Chan thanks you for reading this article. He’s always ready to share his vision on what makes USDQ such an outstanding project. I-Chan is convinced that USDQ will become a major disruptor in stablecoins niche, bringing predictive capabilities, full decentralization and pro-democracy governance architecture.
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.