QIAN.finance Documents
  • QIAN.finance knowledge base
  • QIAN.finance 知识库
  • QIAN V2 Whitepaper
    • QIAN V2: Innovative decentralized fractional-algorithmic synthetic assets protocol
    • Price Stability of QSD
    • QSD Minting
    • QSD Redeeming
    • KUN token
    • Buybacks & Recollateralization
    • Bond stabilization
    • Liquidity mining Programs & Governance mining
    • Conclusion
  • QIAN V2 白皮书
    • QIAN V2:创新的去中心化分数算法合成资产协议
    • QSD 的套利稳定机制
    • QSD 铸币
    • QSD 赎回
    • KUN 代币
    • 回购和再抵押
    • 债务稳定
    • 流动性挖矿计划与治理挖矿
    • 总结
  • QIAN V1 whitepaper
    • QIAN V1: crypto-assets backed stablecoin protocol
    • Introduction to QIAN stablecoin protocol
    • Locked asset management
    • Stability management
    • External systems
    • System governance
    • Reference
  • QIAN V1 白皮书
    • QIAN V1:加密资产储备型稳定币协议
    • QIAN V1 介绍
    • 锁定物管理
    • 稳定性管理
    • 外部系统
    • 系统治理
    • 参考文献
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  • 1. Core configuration parameters of cryptocurrencies
  • 2. Overall core configuration parameters of the system
  • 3. Cryptocurrency portfolio management

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  1. QIAN V1 whitepaper

Locked asset management

1. Core configuration parameters of cryptocurrencies

QIAN stablecoins are generated by users locking cryptocurrencies in smart contracts, initially the underlying assets will be in ETH, ERC-20 versions of BTC, and other mainstream ERC-20 tokens. After a certain period of stable operation of the system, we will consider incorporating offline assets mapping tokens with consensus to be used as collateral for the issuance. Given the high volatility and correlation of token-based assets, excess reserves of all types of assets will be required.

For each cryptocurrency, the core parameters of the system configuration include.

  • Market Price VolatilityVoliVol_iVoli​: 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 iii asVoliVol_iVoli​。. at the beginning of the system going online,VoliVol_iVoli​will 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, thusVoliVol_iVoli​does not address projections of future volatility.

  • Initial guarantee ratioQi,0Q_{i,0}Qi,0​: subject to market price fluctuations for each cryptocurrency,Qi,0Q_{i,0}Qi,0​is 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,tQ_{i,t}Qi,t​: Qi,t=Pledged(i,t)QUSDiQ_{i,t} = \frac{Pledged(i,t)}{QUSD_i}Qi,t​=QUSDi​Pledged(i,t)​

  • Minimum asset guarantee ratioQi,minQ_{i,min}Qi,min​: a percentage of the guarantee ratio of the CSA for asset iii , below which will trigger the freezing of guarantee assets.

  • Alarm guarantee ratio Qi,alarmQ_{i,alarm}Qi,alarm​: Qi,alarm=Qi,0+Qi,min2Q_{i,alarm} = \frac{Q_{i,0} + Q_{i,min}}{2}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.

  • Maximum mint amount: it means the maximum amount of QUSD that can be minted in the system for that type of cryptocurrency.

WherePledged(i)Pledged(i)Pledged(i) is the overall value of the currently locked cryptocurrency iii, quoted from the oracle and updated periodically.

For a cryptocurrency iii, set the maximum minting amount of QIAN to be H, then there are:

0<H≤Pledged(i)×Price(i)20 < H \leq \frac{Pledged(i) × Price(i)}{2}0<H≤2Pledged(i)×Price(i)​

Where Price(i)Price(i)Price(i) is the current market price of the cryptocurrency (from the oracle).

2. Overall core configuration parameters of the system

For the system, the core parameters include:

  • Overall asset guarantee ratio QtotalQ_{total}Qtotal​: Qtotal=∑i=1nQi×QUSDiQUSDtotalQ_{total} = \sum_{i=1}^{n}{Q_i × \frac{QUSD_i}{QUSD_{total}}}Qtotal​=∑i=1n​Qi​×QUSDtotal​QUSDi​​

  • Overall minimum guarantee ratio QminQ_{min}Qmin​: Initially, Qmin≥90%Q_{min} ≥ 90\%Qmin​≥90% is required, and subsequent adjustments will be made through the community governance process.

  • Debt auction observation time TauctionT_{auction}Tauction​: When QminQ_{min}Qmin​ appears, the time before the global debt auction begins. 3. Cryptocurrency portfolio management

3. Cryptocurrency portfolio management

In order to avoid QIAN stablecoins (such as QUSD)'s price volatility, diversify risk and enhance stability, the QIAN system will select reserves from mainstream cryptocurrencies and tokenized assets based on indicators including, but not limited to: asset type, market capitalization, liquidity, volatility, issuer, and region of issuance.

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 iii. This parameter is related to the required initial guarantee rate of CSA for cryptocurrency iii, with a higher maximum minting amount for low-volatility cryptocurrencies.

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Last updated 4 years ago

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