Platinum, the leader in blockchain marketing and development is creating the technology for a new and efficient stablecoin – the USDQ. The USDQ is a decentralized stablecoin that is backed by bitcoin. It has been designed in such a way so as to keep its value always pegged at 1 USDQ = 1 USD.
Stablecoins, or asset-backed tokens, are cryptocurrencies whose value is inherently linked to a real-world asset. Stablecoins integrate the best of both worlds – the advantages of a decentralized currency and price stability.
Problems with current stablecoins
The extreme volatility of cryptocurrencies has long been regarded as a major stumbling block in the path to their mass adoption. Cryptocurrencies are regarded more as a store of value rather than a medium of exchange. This has led to intense market speculation leading to price fluctuations. Stablecoins have the potential to solve the problem of price fluctuation and can very well be the solution the financial world was looking for.
While many attempts have been made earlier to create stablecoins – Tether, USDC, TrueUSD, Gemini, etc. – most have failed to remain backed by the underlying asset. Tether, one of the most popular stablecoins, recently announced that it was no longer being backed by the US Dollar.
To solve the inherent problems of current stablecoins, a new stablecoin – USDQ – is being launched soon. And Platinum has created a well-thought technology behind it.
While USDQ’s value is linked to that of the US Dollar, it will be backed by Bitcoin reserves held securely in an asset control system. USDQ can be bought on the secondary markets (cryptocurrency exchanges) at the price of one US Dollar for one USDQ. It can be also bought by placing a Bitcoin collateral.
To ensure the stability of the value of the USDQ token, a self-regulating mechanism has been created. Smart contracts will “print” new USDQ when new Bitcoins enter the ecosystem. These new USDQs are sent to the borrower, who has placed a BTC collateral in lieu of USDQ. When the borrower wishes to return the tokens and collect the collateral, the BTC is “de-frozen” and sent to the borrower. The USDQ tokens received are burned.
A scanner service will impart absolute transparency of all transactions taking place within the network. Every user will be able to see every single transaction being made within the ecosystem – USDQ released, BTC held in storage, collateral released, USDQ burned and so on. This will ensure a high level of trust within the network.
Tech developed at Platinum
The experts at Platinum have devised the architecture and operational mechanism of the USDQ to create a true stablecoin that will maintain its price equivalent to the US Dollar, by creating an extremely sophisticated smart contract. Platinum is the largest listing brokers for ICO/STO/IEO, and they also provide a wide range of services starting from technical support like programming (blockchain development, token creation, smart contracts, IT support, etc.) and ending up with a comprehensive legal advisory.
“The USDQ is the result of comprehensive research of the pain points of stablecoins. We are confident of having created a robust mechanism that ensures price stability. This will have far-reaching consequences in the crypto markets. We believe that USDQ, once listed, will bring about a paradigm shift to the market,” commented Platinum team.
There are plans to list USDQ on the top crypto exchanges. For more information on what USDQ is and how it works, read the special page. For more information on the comprehensive list of services offered by Platinum, please visit https://platinum.fund.