The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

An In-Depth Look at Platinum’s Q DAO and USDQ Stablecoin

by Sponsored
April 12, 2019
in Industry Announcements

Stablecoins have been playing a bigger role in the crypto markets. It all started when Tether (USDT) became the first stablecoin to win popularity across the community. Since then, more and more coins have been popping up – Gemini, True USD, and others. All of them are, in essence, blockchain-based avatars for USD, being pegged to the dollar.
USDQ is different. Pegged to Bitcoin as collateral (and other cryptocurrencies in the future), it improves on the mechanics of other stablecoins, eliminating the need to rely on “legacy” institutions.

USDQ and Q DAO

Below we present the gist of how USDQ operates, how the coins are created within the ecosystem, and why many proponents call the crypto-collateralized system the optimal path for cryptocurrency.

The ecosystem functions in order to mint two coins – the internal coin Q DAO, used to manage the ecosystem, and the USD-pegged USDQ. The system is based on collateralization of Bitcoin and other cryptocurrencies, enabling any user to input cryptocurrency and mint USDQ coins, with its value continuously oscillates around $1 with insignificant deviations from time to time.

Just as other crypto-based stablecoins have gained more and more traction, USDQ is expected to grow and become an important part of the crypto markets. With more and more users, the ecosystem will become a “reserve vault”, used to safely store cryptocurrency and produce the stablecoin.

The technical development is being driven by the Platinum Engineering Team, which brings together top-notch development, marketing and strategic talent in the crypto markets. The project has been slowly gathering a community of stakeholders around it.

To understand how USDQ works, it’s important to look into the two main differences between USDQ and other stable cryptocurrencies, such as USDT, TUSD, GUSD. The one difference is the type of collateral used by these systems. In popular stablecoins, the collateral is fiat which is held in legacy financial institutions, i.e. banks.

The other difference is that those systems are hinged on the validity of the statements issued by the companies’ teams and auditors who verify the fiat reserves, while USDQ tracks all transactions and collateral reserves on the blockchain.

USDQ doesn’t need any links with banks or auditors. The process to generate USDQ is based on the smart contract which creates the so-called Collateralized Debt Contract (CDC) and locks the collateral, i.e. crypto assets. When a user wants to generate USDQ, they need to input crypto assets into a CDC, and, in return, they will get USDQ.

The ecosystem uses the over-collateralization method which is required due to high volatility seen in cryptocurrency markets. As compared to stablecoins like USDT, where the ratio is 1 USD = 1 USDT, USDQ requires a higher ratio of crypto assets to be placed as collateral, with the exact ratio amount varying. In addition to interacting with a next-generation smart contract, traders can also purchase USDQ on secondary markets.

Criticism of USDQ

Many of the proponents of USDQ are drawn by the fact that no fiat is used, which eliminates any risks that might arise from dealing with legacy financial institutions. There are some concerns that the USDQ ecosystem might be vulnerable to the same risks, which resulted in the failure of the infamous DAO due to the $50-million hacking attack. Others point to the fact that should users want to exchange the stablecoin back into crypto assets, they won’t only need to return the principal amount, but also pay the fees, needed to sustain the system’s operations.

Another major concern is how the USDQ system will react to a so-called “black swan” event, an unexpected plunge in the prices of crypto assets. Questions arise about the fact that the USDQ system will dilute the amount of coins in order to prevent any negative impact. Some crypto enthusiasts worry that the attention from various governmental agencies, such as the SEC and others, might lead to the need to report to the regulating agencies the highly technical inner workings of the system.

Future plans to introduce other stablecoins

Even though various concerns arise, USDQ continues to offer a viable option to collateralize cryptocurrencies and access the stable crypto-backed coin, so that traders can effectively hedge against undesired prices moves.

It is expected that the ecosystem will subsequently start accepting various other cryptocurrencies as collateral, enabling multi-asset collateralization. In addition, the system will offer stablecoins pegged to various national fiat currencies.

Other projects following USDQ

It should be noted that other major cryptocurrency projects are currently considering ways to launch their own stablecoins, collateralized by crypto. Although it’s unknown what components such future systems might include and how they might operate, they will likely follow suit and leverage the same mechanics as USDQ.

Overall, users appreciate the ability to collateralize their crypto asset reserves without the need to turn to fiat, and carry out all their transactions on the blockchain.

USDQ is a decentralized stablecoin, which uses algorithms to offer higher stability and reliability. Fully on-chain and monitored by high-speed AI robots, the ecosystem offers reliable defenses against malicious acts and attacks. The first run in a line of fiat-pegs, USDQ is brought by Platinum Engineering Team, looking to edge together innovative solutions in collateralization, using stabilizing mechanisms and oracles for high-endurance stablecoins. Fully anonymous, USDQ breaks the limits of the legacy world.


Anton Dzyatkovskiy is a blockchain architect lead of Platinum Engineering, entrepreneur, negotiator. He is a passionate and hardworking business leader with more than 13 years of experience in different positions within FinTech, Retail, and E-Commerce. Experienced in expanding financial businesses to totally new markets.

This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

 

 

Submit a Press Release

Industry Announcements

  • DPAT Raises Private Funding To Enhance Web 3.0 Ecosystem
    June 2, 2023
  • Pink Moon Studios Reveals ‘KMON: World of Kogaea’ Pioneering a New Era in Web 3.0 Open-World Gaming
    June 2, 2023
  • OKX Proposes Industry-First BRC-30 Token Standard To Enable Bitcoin and BRC-20 Token Staking
    June 2, 2023
  • Devour and AlterVerse Partner To Bring the World’s First Web 3.0 Food Ordering Marketplace to the Metaverse
    June 1, 2023
  • Bumper’s Breakthrough DeFi Protocol Set To Reshape Options Pricing
    May 31, 2023
  • MetaZone Secures Funding To Expand the World’s First Tokenized App Platform for the Metaverse
    May 30, 2023
  • The QWAN Launch – A Token for the Global Gaming Industry
    May 30, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$27,219.29
$27,219.29
0.22%
Ethereum
$1,905.70
$1,905.70
0.15%
Cardano
$0.381815
$0.381815
1.38%
XRP
$0.525765
$0.525765
0.34%
Dogecoin
$0.073133
$0.073133
0.86%

Spotlight

  • Analyst Known for Calling Bottoms Predicts 2019-Style Bounce for Bitcoin (BTC) – But There’s a Big Catch
    May 28, 2023
  • Arthur Hayes Says Explosive Times Ahead for Bitcoin and Financial Markets as US Debt Deadline Approaches
    May 28, 2023
  • Former Goldman Sachs Executive Says ‘Clear’ Bull Trend About To Manifest for Crypto and Technology Stocks
    May 28, 2023
  • Here’s What’s Accelerating De-Dollarization Trend, According to Macro Guru Lyn Alden
    May 28, 2023
Coinfest Asia Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl