USDQ STABLE COLLATERIZED DIGITAL ASSET
Before we continue into the topic of the day I’ll love to inform the newbies amongst the basics so as not to get them disorganized, the study and research of cryptocurrency has seen a rapid increase since bitcoin touched $20,000 in the fourth quarter of the year 2017, it has gained a huge popularity and interest of most individuals. Everyone wants to get rich with this invention but the mistakes most adopters make is that they don’t do thorough research to learn about all pros and cons before sailing, most people get burnt and blame others for their mistakes.
First I’ll give a brief explanation of what digital asset mostly called cryptocurrency means, a digital asset is any text or media which was configured into a binary source with an added right to use it. Satoshi Nakamoto created the very first digital asset known to man called bitcoin cryptocurrencies to make use of an encryption protocol that pedals the generation of units and authenticates the transfer of digital assets in a matter of seconds, unlike the traditional banking which can take days sometimes months to deliver. Traditional banking payment methods are faced with various problems which include a long transfer time frame, charge-back fraud amongst others.
#usdq is an erc-20 compliant token built on the ethereum smart contract with the same functionality as the usdt (United States Dollar Tether), what this means is that usdq is a stable currency tied to the value of the United States Dollar, adopting usdq is the best option because in times of low digital assets volatility. It will help leverage the loss of traders might encounter efficiently and keep them safe from loss due to bad market or bear market. The stable coins are generated at the Q DAO Platform through the collateralization of crypto assets (currently, only Bitcoin can be collateralized, but there are plans to collateralize other crypto assets in the future.). The Q DAO foundation is a decentralized community which brings together blockchain developers and seeks to assure effective development, maintenance and scaling for the Q DAO Platform.
#usdq stable coin can be gotten from an exchange or any usdq personal account, the most intriguing part is that the stable coin has no limitations, unnecessary requirements, it's open to everyone and it doesn't have a strenuous procedure to obtain it. Users now have the opportunity to use their digital assets as collateral undermining the volatility of the market, conventionally it is difficult to get a loan with the use of digital assets but with the debt auction, users can be involved in the procedure carried out to sell Q DAO for USDQ as a reverse auction. It is used to obtain the funds, required to cover the debt, emerging as a result of the CDP (Collateralized Debt Position) becoming undercollateralized. The collateral procedure is carried out to sell collateral from the CDP during the liquidation. This process includes two Stages:
- Coverage of any debt owed to the ecosystem by the CDP owner,
- Assurance that the excessive collateral is refunded to the CDP owner at the best possible price that can be found on the open market.
WHAT IS THE Q BOX
The #qbox app connects a device to the self-trained neural network, it is capable of predicting price movements for crypto assets, learning from price charts, news bulletins, and market buzz. After a user has collateralized the crypto assets, he will receive the loan in #usdq and obtain the opportunity to install the Q Box app on his devices. Another functionality of the neural network is mining the Q DAO, an internal governance token within the Platform. Q Box brings decentralization to the ecosystem, acting as a network of decentralized and fully independent predictors, forecasting prices for collateral assets and proposing potential changes to the collateralization ratios.
PROCESS OF COLLATERALIZED DEBT POSITION
Getting a loan from the #qdao is simple all users have to do is register on the Q DAO network with their email address so they can get important news and updates on the go in case of important events. They do not need to reveal too much about themselves to ensure anonymity, the users will be given a key to his bitcoin wallet, to the #qdao network and ethereum wallet which will enable them to have access to numerous features on the platform. The next thing to do is to transfer the needed amount of bitcoin to the new platform generated wallet before setting the desired parameters for the loan to be obtained. The platform then checks for availability of the user's demands and mints the respective amount of #usdq and funds the user's wallet upon verification.
The user can adjust the collateral depending on the changes to the collateral price, should the collateral's price go down, the user must add up the collateral or repay a portion of the USDQ-denominated loan. If the user fails to take any action, the ecosystem will perform the forced liquidation process. Should the collateral's price go up, the user can increase the USDQ-denominated loan amount, withdraw a portion of the collateral or avoid taking any action at all. Finally, the user can request for withdrawal, and the user should repay to the ecosystem the earlier received USDQ-denominated loan and the Stability Fee, which accrues throughout the loan term and payable in Q DAO token. The user utilizes the private key in order to sign the transaction, enabling the user to get the collateral assets back to his wallet.
USDQ CONTACT INFORMATION FOR LATEST NEWS & UPDATES
ARTICLE WRITTEN BY TIVERE AKPORODE
♦ BITCOINTALK PROFILE: TIVERE