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. QIAN V2 Whitepaper

Price Stability of QSD

QSD can be minted and redeemed in real-time from the system for $1 of value. This allows arbitragers to balance the demand and supply of QSD in open markets like Uniswap.

If the market price of QSD is above the price target of $1, then there is an arbitrage opportunity to mint QSD tokens by placing $1 of value into the system per QSD and sell the minted QSD for over $1 in the open market. At all times in order to mint new QSD, a user must place $1 worth of value into the system. The difference is simply what proportion of collateral and KUN makes up that $1 of value. When QSD is in the 100% collateral phase, 100% of the value that is put into the system to mint QSD is collateral. As the protocol moves into the fractional phase, part of the value that enters into the system during minting becomes KUN (which is then burned from circulation). For example, in a 95% collateral ratio, every QSD minted requires $0.95 of collateral and burning $0.05 of KUN. In a 60% collateral ratio, every QSD minted requires $0.6 of collateral and burning $0.4 of KUN, and so on.

If the market price of QSD is below the price range of $1, then there is an arbitrage opportunity to redeem QSD tokens by purchasing cheaply on the open market and redeeming QSD for $1 of value from the system. At all times, a user is able to redeem QSD for $1 worth of value from the system. The difference is simply what proportion of the collateral and KUN is returned to the redeemer. When QSD is in the 100% collateral phase, 100% of the value returned from redeeming QSD is collateral. As the protocol moves into the fractional phase, part of the value that leaves the system during redemption becomes KBT (which is minted to give to the redeeming user). For example, in a 90% collateral ratio, every QSD can be redeemed for $0.90 of collateral and $0.10 of minted KBT. KBT can be converted into KUN tokens when certain conditions are met.

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Last updated 4 years ago

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