Market Price VolatilityVoli: Due to the high-frequency trading nature of cryptocurrencies, the QIAN 2.0 system will draw on current common international indicator RV (Realized Volatility) in the market, which reflects option price fluctuations. Define the volatility of cryptocurrency i asVoli。. at the beginning of the system going online,Voliwill be updated based on the quoted intervals of the oracle. The concept of stablecoin and options is different, the risk of the underlying assets can be effectively managed through recent realized volatility, thusVolidoes not address projections of future volatility.
Initial guarantee ratioQi,0: subject to market price fluctuations for each cryptocurrency,Qi,0is in dynamic flux and will be updated based on the quotation cycle of the oracle at the beginning of the QIAN system going online.
Current asset guarantee ratioQi,t: Qi,t=QUSDiPledged(i,t)
Minimum asset guarantee ratioQi,min: a percentage of the guarantee ratio of the CSA for asset i , below which will trigger the freezing of guarantee assets.
Alarm guarantee ratio Qi,alarm: Qi,alarm=2Qi,0+Qi,min, an alert will be triggered if the CSA’s asset ratio falls below a certain percentage, alerting the user that the CSA needs to be replenished with more reserve assets in order to maintain a healthy guarantee ratio, however, the user will still be able to fully redeem the CSA if it’s not replenished.
WherePledged(i) is the overall value of the currently locked cryptocurrency i, quoted from the oracle and updated periodically.
For a cryptocurrency i, set the maximum minting amount of QIAN to be H, then there are:
0<H≤2Pledged(i)×Price(i) Where Price(i) is the current market price of the cryptocurrency (from the oracle).
Overall asset guarantee ratio Qtotal: Qtotal=∑i=1nQi×QUSDtotalQUSDi
Overall minimum guarantee ratio Qmin: Initially, Qmin≥90% is required, and subsequent adjustments will be made through the community governance process.
Debt auction observation time Tauction: When Qmin appears, the time before the global debt auction begins. 3. Cryptocurrency portfolio management
Since QIAN is a decentralized system, every user is free to participate in the minting of QIAN stablecoins. The system's crypto-asset portfolio management has a highly flexible strategy, and the system does not deliberately maintain the ratio accounted for the various crypto-assets in the system. However, as mentioned earlier, the system will set the maximum minting amount for different cryptocurrencies i. This parameter is related to the required initial guarantee rate of CSA for cryptocurrency i, with a higher maximum minting amount for low-volatility cryptocurrencies.