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Locked asset management
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 Volatility: 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 cryptocurrencyas。. at the beginning of the system going online,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, thusdoes not address projections of future volatility.
- Initial guarantee ratio: subject to market price fluctuations for each cryptocurrency,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 ratio:
- Minimum asset guarantee ratio: a percentage of the guarantee ratio of the CSA for asset, below which will trigger the freezing of guarantee assets.
- Alarm guarantee ratio:, 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.
Where
is the overall value of the currently locked cryptocurrency
, quoted from the oracle and updated periodically.
For a cryptocurrency
, set the maximum minting amount of QIAN to be H, then there are:
Where
is the current market price of the cryptocurrency (from the oracle).
For the system, the core parameters include:
- Overall asset guarantee ratio:
- Overall minimum guarantee ratio: Initially,is required, and subsequent adjustments will be made through the community governance process.
- Debt auction observation time: Whenappears, the time before the global debt auction begins. 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
. This parameter is related to the required initial guarantee rate of CSA for cryptocurrency
, with a higher maximum minting amount for low-volatility cryptocurrencies.