Why the core features of USDQ and KRWQ will beat other stablecoins? Depth look from Platinum Q DAO Engineering, developers of real stablecoins and BTCNEXT exchange. Part 2 — How to use CDP in Q DAO ecosystem Platinum Follow Jul 5, 2019 · 5 min read

This article was provided by Ivan Borisov, Blockchain Engineer at Platinum Q DAO Engineering. Working together with highly experienced designers, front-end/back-end developers, auditors, and strategists, Ivan is responsible for architecting reliable and scalable blockchain solutions. He always strives to gain a deep understanding of underlying business logic, so that the delivered DLT-driven systems help strengthen the overall customer’s strategy, effectively integrating with other facets.

For the past 3 years, Platinum Company became the biggest Listing Broker in the world: we have listed more than 300 projects on Top Exchanges and supported Market Making for more than 70 projects.

Platinum STO/ICO fundraising dashboard and tokenization platform are now installed to 30+ projects, and it has helped them to raise more $350,000,000

In Platinum Q DAO Engineering we are creating a lot of cool stuff:

BTCNEXT — most secure, compliance and regulated exchange, built by traders for traders;

Decentralized stablecoins KRWQ, USDQ, JPYQ, CNYW (we are second Stablecoins DAO after Maker DAO)

Read this article and start learning about a decentralization wave, currently disrupting stablecoins.

What is USDQ?

Platinum Q DAO Engineering is the creator of the USDQ stablecoin. USDQ allows its users to collateralize their BTC thereby, guaranteeing its minimum value; a feature unavailable with Bitcoin and Ethereum. USDQ users can rest safely against the volatile tendencies of the market, as it is pegged with the US dollar; therefore, it is valued at 1 USD, just Like Tether.

KRWQ is another Q DAO family stablecoin by Platinum Q DAO Engineering, KRWQ is pegged to Korean Won. Soon there will be even more fully backed stable coins: JPYQ, SGDQ, HKDQ, and CNYQ, all under Q DAO brand.

The Tokens

A full understanding of the USDQ stablecoin is effective only when we study the other tokens on the ecosystem. The Q DAO Ecosystem comprises two coins: Q DAO and stablecoins family USDQ, KRWQ and others.

1. Q DAO: the creation of Q DAO was factored to govern the ecosystem and to pay fees inside the ecosystem.

2. USDQ: USDQ is a decentralized stablecoin backed by bitcoin. It functions by using algorithms and is pegged to USD, that is USDQ 1 = USD 1.

Platform Interaction

Now, we come to the part where we enlighten you on how to get hold of USDQ. When your interaction with the ecosystem commences, your Bitcoin gets locked up in Collateralized Debt Positions or CDP for short.

Generating USDQ via CDP

Users reserve their bitcoins in CDPs. The CDP then rolls out USDQ for its users while determining the interest on the reserved pooled Bitcoin. This form of interest is called the “Stability Fee.” If under some circumstances a user wants to withdraw their Bitcoin from CDP, then they would have to pay back an equivalent sum of USDQ.

Note: At first, USDQ ecosystem would only accept BTC as collateral. Later on, the platform will also accept other top cryptocurrencies as collateral.

The peg is symbolically used as a cryptocurrency but owing to the unstable nature of cryptocurrencies; there is a looming doubt about how the system works.

The answer to that would be “over-collateralization.” That is, if you want to purchase $100 of stablecoins then you need to deposit minimum $166 of BTC, which clearly shows us that it isn’t a straight 1:1 ratio.

This is the same for CDPs as well. CDPs are notorious for always being over-collateralized.

Interacting with CDP

CDP interaction is a 4 step process. Here is a quick breakdown:

# Step 1: CDP Creation and Collateral Deposition

The first step would be the sending of the transaction made by the user to the Q DAO platform for the creation of the CDP. The user then sends another transaction with the required amount to fund the collateral used to produce USDQ. The CDP is then considered to be collateralized.

# Step 2: USDQ Generation From The Collateralized CDP

After the collateralization, the CDP user then proceeds with a transaction to collect back the USDQ amount required from CDP and CDP then accumulates an equal amount of debt. The user is then locked out to access the collateral until the payment of the debt.

# Step 3: Payment of Debt and the Stability Fee

To retrieve the collateral amount, the user has to fulfill the payment of the debt in CDP, including the stability fee that is gained on the amount of the debt. The payment of the stability fee can only be made in Q DAO. The CDP becomes debt free only when the user sends the required USDQ and Q DAO to the CDP, fulfilling the payment of the debt and stability fee.

# Step 4: Collateral Withdrawal and Closure of CDP

After the payment of the debt and stability fee, the CDP user is now free to retrieve either all or a part of its collateral back to its wallet.

Conclusion

This is the second part of article series from Q DAO Engineering. Please find the next parts via the web or in the blog. Platinum Q DAO Engineering comprises of an excellent team fluent with the market runabouts and adept at upholding the spirit of decentralization. Decentralized tokens like USDQ and KRWQ from Q DAO family of stablecoins could bring about the globalization of cryptocurrency in the near future.

BTCNEXT Exchange is a next generation spot and margin trading platform by the PLATINUM Q DAO ENGINEERING team. It is the first Strategic business partner of USDQ stablecoin.

About PLATINUM Q DAO ENGINEERING

USDQ is brought by the PLATINUM Q DAO ENGINEERING team, as a measure to develop a high-endurance stable coin that uses innovative solutions in collateralization, price stabilization mechanisms, and oracles.

Visit https://usdq.platinum.fund for latest updates about USDQ (and KRWQ — soon)

Visit now Official Telegram chat in Korean or in English to learn about the latest development hacks.

Dive in Official Kakao Talk to ask questions in Korean directly to Platinum Q Dao management team.

# Q DAO diary { dev.day: 374, round: 1, 21 days until ieo#2, Q DAO price: $1.99 }