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Friday, July 5, 2019

What Is USDQ and Q DAO? Complete Guide from PLATINUM ENGINEERING

Mihaill Kudryashev, a Front-end engineer at PLATINUM ENGINEERING, wrote this article while seeking to raise awareness about USDQ, a stablecoin his team is helping to develop. Among the biggest benefits, USDQ brings full decentralization and predictive capabilities. Soon there will be even more fully backed stable coins: JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ under Q DAO governance. Slowly learning more about blockchains, Mihail has been effective in transforming vague ideas into effective front-end solutions with strong UI/UX. Within his team, he’s helped many crypto startups to make their voice heard throughout the emerging global crypto community. In this article, Mihail looks into the key benefits that users win from using USDQ.

USDQ brings stability, with no need to engage legacy finance

How do USDQ and Q DAO coins work within the ecosystem?

USDQ is decentralized stablecoin, which uses algorithms to offer higher stability and reliability. It's backed by Bitcoin (another top 10 cryptocurrencies will be added in future). The elegant system places all transactions on the blockchain and empower users to execute cross-border and disintermediated transactions at any time and from any place. It's pegged to the value of USD, i.e. 1 USDQ always equals 1 USD. The ecosystem's design borrows heavily from fractional banking systems. In the nutshell, USDQ is a customer-facing stablecoin and Q DAO is an internal "operational" coin; together they help create a stabilized safe haven for anybody who's looking to hedge against rampant volatility of crypto markets.

Introduction to Q DAO and USDQ

There's a number of factors that prevent mass adoption of cryptocurrencies. The biggest factor among this is high volatility, seen in crypto. Bitcoin, the oldest and most popular coin, has been fluctuating with prices oscillating between 20,000 and 3,500 in just one year of 2018. No potential adopters, be it merchants or individuals, would be happy with suffering huge losses that such drastic changes can entail. And it's this high volatility that USDQ is set to address, bringing stability and convenience.

Tether (USDT) is probably the most well-known and widely used stablecoin. However, it has been embroiled in various controversies from the very start with no end to these in sight. Although the system is supposed to assure the 1-to-1 fiat reserves for all Tether units created, the website content has been recently changed to say that the issuer views not only cash in the bank, but also various loans to other companies, as the reserves. Both regulators and crypto enthusiasts have voiced concerns, which might bode ill for Tether in the months to come.

USDQ works differently. Here, the stablecoin is pegged to US Dollar and backed by Bitcoin (+top 10 other cryptocurrencies in future). It's similar to lending operations and fractional banking systems. Overcollateralization is used to mitigate potential unexpected changes in assets prices.

The USDQ ecosystem is highly transparent as all of the operations are recorded on the immutable Ethereum blockchain, open to review by anybody and at any time. The smart contracts bring automation to business processes and eliminate the need for middlemen to assure trust and prevent abuse.

In order to determine how viable USDQ will be in the future, we need to discuss the two tokens used within the ecosystem.

Review of Q DAO and USDQ

Q DAO is governance token, entitles holders to participate in voting for new decisions. Importantly, holders are interested seeing Q DAO's prices growing and thus they are incentivized to thoroughly review proposals and deliver the best decisions. In this way, Q DAO imbues higher democracy and decentralization, on which many current crypto projects lag.

In addition, all the fees, charged for the system use, can be paid only in Q DAO.

In order to create USDQ, a user needs to transfer Bitcoins into a Collateralized Debt Contract (CDC). This will automatically trigger the smart contract to generate USDQ and send it to the user. In order to change USDQ back into crypto assets, users need to pay back the amount of USDQ they input and the fees, chargeable in Q DAO Tokens. Whenever this is done, USDQ is automatically destroyed and the Collateralized Debt Сontract is closed.

In addition by getting USDQ directly at the company's website, users can trade in USDQ on secondary markets. It's as easy as trading Bitcoin or Ethereum or any other coin.

Traders can store both coins in their wallets, assuring higher security. The stability and ease of use for USDQ open up wide ranges of adoption for both businesses and end consumers alike.

What makes USDQ stand apart

The main difference between projects like Tether and USDQ is complete transparency and openness in the inner workings of USDQ. All the data is easily accessible on the blockchain and there are no rumors or controversies as to the reserves held by the team, potential conflicts of interest or hidden agendas.

The CDС mechanics ensure that it's impossible to create fake units of USDQ, as smart contract can be activated only after an amount in Bitcoins is input. The development is being done completely transparent. Interested parties can review the smart contract, presented on the website. The audits and peer reviews were carried out to assure the highest quality of smart contract. The website-based scanner enables to track all the data about each and every transaction, including time, amount and collateral size.

In addition, should a "black swan" event occur, i.e. a drastic fall in Bitcoin prices, Q DAO is sold on secondary markets. Bitcoin value is liquidated to make a USDQ buyback procedure, which prevents any losses on the part of the system's users.

Additionally, PLATINUM BLOCKCHAIN ENGINEERING which is helping to develop the ecosystem is working hard to build up long-term partnerships with stakeholders in the crypto industry. The more liaisons the team wins, the better outlook for USDQ will be.

Why do we need stablecoins anyway?

Different assets produce varying levels of volatility in prices, when compared to each other. For instance, the purchasing capacity of US dollar has reduced over time with 1 USD from 1913 equaling 24 USD today (2019). This happens due to inflation 3-10% per year.

In comparison, Bitcoin almost tripled in value in 2018 and then fell down by as much. Thus, fiat currencies are more stable, when compared to cryptocurrencies.

Stablecoins don't attempt to fight inflation. Instead, coins like Tether and USDQ peg themselves to US dollar, bringing relatively higher stability to crypto trading communities. One of the most famous transactions with Bitcoin is when a pizza was bought with Bitcoin back in 2010. At that time, the pizza ended up costing just a couple of bucks, but today it costs millions. Although stablecoins continue to be impacted by inflation and exchange rates that come to them from fiats they peg themselves to, they are nowhere near the mindboggingly high volatility of crypto assets.

One of the major use cases for stablecoins like USDQ is concluding long-term contracts. For instance, when using a popular decentralized platform Augur, users can bet on the price of oil in 5-10 years. The problem is that you won't only have to account for future changes in oil prices, but also for prices in Ethereum or Bitcoin that you use to make the bet. USDQ solves this problem elegantly and without much trouble. Using it, users don't have to consider future changes in Bitcoin prices and they can concentrate on what they've come here for - betting on future events. And they don’t have to worry about technical details as it’s easy to purchase USDQ and use for trader’s purposes.

Betting industry is just one of the many use cases, where USDQ can bring benefits. It can be successfully used for any transactions done across borders and long-term financial contracts. Virtually, USDQ opens up new opportunities any time value is exchanged and volatility has a negative effect.

Bottom Line

USDQ has a high potential to democratise transactions between companies and individuals globally, bringing fast execution and low volatility. The "PLATINUM BLOCKCHAIN ENGINEERING" is working hard to enable and improve various features in order to help USDQ to take leading positions on crypto markets.

Here are the main ecosystem’s features:

The system uses two tokens (USDQ and Q DAO) in order to tackle volatility, while staying on the blockchain.
USDQ is always pegged to USD 1:1. In order to come into line with as many national exchanges as possible and enter other markets, the company will issue other tokens pegged to the national currencies. For example, there will be CNYQ (for Chinese Yuan), KRWQ (for South Korean Won), as well as JPYQ (for Japanese Yen) at the early stage.
USDQ brings higher decentralization, driving this important vector in the development of crypto industry.
Q DAO holders are interested in seeing the coin grow and succeed, thus they will work hard to review and pick the best proposals for the system to move forward.

Taking into account these beneficial features, there's no question that USDQ will become a viable alternative to other fiat-backed cryptocurrencies like TUSD, USDT, GUSD, USDC etc. Competing with other stablecoins, both already operating and just being developed, PLATINUM ENGINEERING will roll out the new features and underlying tech solutions that'll help propel the coin.

USDQ is decentralized stablecoin, which uses algorithms to offer higher stability and reliability. Fully on-chain and monitored by high-speed AI robots, ecosystem offers reliable defences against malicious acts and attacks. First run in line of fiat-pegs, USDQ is brought by PLATINUM ENGINEERING Team, looking to edge together innovative solutions in collateralization, using stabilizing mechanisms for high-endurance stablecoins. Soon there will be even more fully backed stable coins: JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ under USDQ brand. Fully anonymous, USDQ breaks limits out of this legacy world.

PLATINUM ENGINEERING values your opinion and welcomes you to continue the conversation on Telegram or Facebook, where the company’s development team is always ready to help you find solutions to pressing issues. Working on projects like USDQ, Michael has gained an invaluable suite of skills and insights, enabling to roll out high-usability UI/UX with tight deadlines and lack of clear expectations as to user behaviors. The team has successfully produced white-label wallets, stand-alone fundraising platforms, as well as integrated fundraising ecosystems. Any startup looking for a reliable partner to help execute a success-story will win from a free consultation with the PLATINUM ENGINEERING team about potential solutions to their needs and issues.

This overview may not be fully exhaustive and does not assess the viability of any project, nor its team legitimacy. Readers should conduct their own due diligence before using or investing in any of the listed Stablecoins. This article represents the author’s opinions only and should not be considered investment advice. All described functionality in the article is still under development, it can be changed/processed. Please follow the updates.

[Daily Discussion] Friday, July 05, 2019

Thread topics include, but are not limited to:

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[uncensored-r/BitcoinMarkets] [Daily Discussion] Friday, July 05, 2019

The following post by AutoModerator is being replicated because some comments within the post(but not the post itself) have been silently removed.

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The original post's content was as follows:

Thread topics include, but are not limited to:

General discussion related to the day's events

Technical analysis, trading ideas & strategies

Quick questions that do not warrant a separate post

Thread guidelines:

Be excellent to each other.

Do not make posts outside of the daily thread for the topics mentioned above.

Other ways to interact:

Get an invite to live chat on our Slack group

Set your flair to trade pretend money in the Flair Game

Weekly threads: Newbie Mondays and Fundamentals Fridays

Altcoins Discussion: Altcoin Discussion

Apocalypse of Plustoken

https://i.redd.it/4ed0ie0c3g831.jpg

One day before Plustoken fall apart, the official account of Shenzhen Police Department got “attack” from some investors .

https://i.redd.it/xipidl8d3g831.jpg

"We all use it as Yu'E Bao and the earnings return to account on time every day. Why it stops working out of sudden?” He Xiaoli did not know what to do. She’s afraid to tell the news to her husband and mother, because there are hundreds of thousands of money was supposed to be the elderly pension money.

Behind the meltdown of the Plustoken is the disappearance of ￥30 billion from 3 million users.

No one knows how much money in there is the elderly pension money, how much money in there is the children's education reserve fund, how much money in there is the savings from years of hard working life, no one even know how much money in there is through usurious loans, small loans or even net loans to get the money.

Not only are these users facing losses on their investments, but they are also facing loans that they may not be able to pay interest on, plunging them into a terrible blackhole of loan that they cannot come back on their feet again

To be honest, those people who participate in Plustoken are not t stupid. On the contrary, they are very smart.

They are just greedy. About the Plustoken - No.1 fund plate in token field, what is the rules of it? I didn't really get involved, but I got the general idea. After all, it was pretty much the same.

Plustoken is a capital project of tokens which was created in April 2018(crowdfunding started in Feb.). The full name of Plustoken is Plustoken digital currency arbitrage quantitative trading wallet, whose declared business model is to carry out arbitrage in different exchanges.

In short, users purchase bitcoin, Ethereum and other mainstream tokens in the exchange. Transfer money to the Plustoken and obtain the corresponding divided – Plustoken token.

How do you get the profit?

Just as mentioned above, it is the same as Yu’E Bao. All you have to do is put the token in the account and then you can receive dividends every day with a monthly yield of 10% and an annual yield of more than 100%. They claimed that there were professional teams to carry out risk-free arbitrage activities such as doing basic transaction, arbitrage and quantification. If you think that return is high enough, then you still underestimate the power of the game. At the same time, the Plustoken rises constantly, which is said to increase by hundreds of times at the highest point.

Huge profits naturally cause huge desire so what if you’re still not satisfied with all the profits? You can invite others to join you:

https://i.redd.it/rzzd8poe3g831.jpg

Invite one person to get 100% of al-dog’s profit.

Invite 10 person to get 10% of al-dog’s profit from the second to the tenth.

Large user’s demand is 10 level of al-dog worth $200,000 and infinite 5% of al-dog’s profit.

Next level is to invite 3 large users and get infinite 10% of al-dog’s profit.

The biggest one is to invite 3 smaller levels and get infinite 15% of al-dog’s profit.

Simply speaking, the more people you bring in, the higher return you will get. With an acceptable approach of money and enough bonus of inviting people and the development to small cities and even villages, Plustoken continues to be used. And to be maintained, it need to make more and more people especially those who already make profits here to fully trust Plustoken.and to keep investing, making the bubble bigger.

However, there is no practical value behind the whole game so at the end of day, it’s still nothing but a Ponzi Scheme, waiting to fall apart.

Besides Plustoken, there is another well-known scheme calld Qubu that only picking up people from small place. At the beginning of Qubu, it collects a batch of funds through real-name authentication to finance its own team operation. Later, through a so-called earnings by walking to attract a number of ignorant people to participate. If these people stop putting more money in the account, there is no money-lost for them. If they keep adding money to the account, they are waiting to be scammed. Then it’s basically the same way to attract more people, pyramid selling and individual investing companies.

It’s always the same trap with different names, including the viral mode-coins, resonance coins and so on. There are others trending modes in the industry such as cloud-mining and cloud-calculating which are all scams. Of course, there are some legit platform but not many actually have mines and mining machines.

Stay on guard.

The reason we are concerned about the recent events is that we have found that some common concepts in the industry like “digital tokens”, “blockchain” and “quantitative trading” have been used in many schemes. And every time they crash, the headline in the news always involves digital tokens so there are many people believe token itself is a scam.

https://i.redd.it/bedt82df3g831.jpg

In fact, there have been a lot of people think this way. They would tell you to be careful if you tell them you are in the game.

Such scams increasingly illustrate two things – the concept of blockchain is trending and the fact that digital token is indeed a particularly good asset transfer tool.

There is no need to further explain the first one. The concept of blockchain is just a popular concept. Those pyramid selling teams used a lot of different concepts. From the earliest Amway derived health care products scam to the subsequent equity investment scam to later P2Pnand other internet finance, they like use the same routine and they can even create a project that fits into a national policy. For example, there was a project focusing on the western before the development of the western regions and a project to enter the west was created and later there was the Belt and Road Initiative project for the program.

The name is always changing and an reasonable high yield and promises are constant.

Here is the logic behind it:

Promise you a high return. You may not believe at first but with a variety of high-end technology projects and blurry words to brainwash you to accept their whole idea. Once you believe them, you will spontaneously pyramid selling to your friends in order to chase a higher return.

Secondly, it is known to all that it’s obvious that token would be used for scam due to its anonymity. 3M was the first to use bitcoin to play a pyramid scheme on a global scale, which made many people find out how easy to use bitcoin for scheme. The collection is not transparent so it cannot be frozen by the bank and it’s easy to just carry on and run away.

These are the two reasons why there are so many pyramid schemes using tokens and blockchain.

In fact, most of people know this kind of high return does not exist. The market is free and an extreme high return will naturally flow in with more capital, eventually adjusting all the profit back to a normal level. But there are still a lot people chose to believe and invest more than they can afford. Why? Probably greed.

Victims are pitiful. Let’s just hope there won’t be any victims any more.