What Is QIAN Second Generation Dollar (QSD) Review ? Complete Guide Review About QIAN Second Generation Dollar

What Is QIAN Second Generation Dollar ?

QIAN Second Generation Dollar V1 protocol adopts the crypto asset pledge minting mechanism similar to MakerDAO’s DAI, and issues decentralized stablecoin QUSD, which has gained market recognition. Community developers of QIAN always pay attention to the technical development in the field of stablecoin.

QIAN Second Generation Dollar The direction of technical upgrading of QIAN protocol is to release users’ collateral under the premise of maintaining the security of users’ funds and the stability of the value of the stablecoin, so as to improve the utilization rate and turnover efficiency of funds as much as possible.

QIAN Second Generation Dollar representatives of the first-generation of stablecoins are USDT, BUSD, etc., These stablecoins take fiat currency as backed assets, issuing tokenized fiat pegged stablecoins. These projects build an important bridge between physical value and crypto value. Its characteristic is centralized operation, which requires the issuing institution to be recognized by the industry.

QIAN Second Generation Dollar Storage Key Points

Token

QIAN Second Generation Dollar KUN plays the role of governance voting in the QIAN V1 protocol. KUN continues to have governance authority and also assumes the role of regulating the algorithm in the Chemix protocol. Through the voting function of KUN, QIAN community can decide the increase or decrease of collateral types, adjust the seigniorage/redemption fee, and adjust the refresh interval and refresh rate of the collateral ratio.

QIAN Second Generation Dollar The operation logic of the algorithm stablecoin is different from the DAO organization mode of QIAN V1, and the system will operate as automatically as possible to provide highly consistent expectations for all participants.

Main Token

QIAN Second Generation Dollar (QIAN Second Dollar) is the synthetic stablecoin issued by Chemix Labs and target a tight band around $1/coin.The actual price of QSD will fluctuate within a certain range and adjusted by the algorithm;

KUN is the governance token of Chemix Labs, which seigniorage revenue, algorithm proportion and governance voting function.

KBT (KUN buffering token) will be used in the redemption and recollateralization to carry the value released by the algorithm and act as a buffer of KUN price fluctuation;

DBQ is a special stable bond token, which will serve as a supplementary mechanism for the algorithm to regulate QSD price stability.

Bond Stabilization

QIAN Second Generation Dollar Among the fourth-generation algorithmic stablecoins, bond tokens are designed to cushion the price fluctuations of stablecoins. In Chemix, studied this design idea and introduced two bond tokens, which are the following tokens: one is the bond token KBT released in redemption and recollateralization and the other one is the special bond DBQ activated when the price of QSD significantly deviates from the target value.

Fractional-Algorithmic

QIAN Second Generation Dollar One of Chemix Labs’ supply mechanisms is backed by collateral and parts of the supply algorithmic. The range of the collateral/algorithm ratio can fluctuate between 0-100%, and the specific mechanism will depend on the market’s pricing of the Chemix Labs synthetic assets like QSD stablecoin. If QSD is trading at above $1, the protocol decreases the collateral ratio. If QSD is trading at under $1, the protocol increases the collateral ratio.

Community Autonomy

QIAN Second Generation Dollar Chemix Labs protocol will continue to practice the governance principle original from QUSD which adopts community governance, and community developers will develop voluntarily and with no active management.

Swap-Based Monetary Policy

QIAN Second Generation Dollar Chemix Labs uses principles from automated market makers like Uniswap to create swap-based price discovery and real-time stabilization incentives through arbitrage There are no predetermined timeframes for how quickly the amount of collateralization changes, however, it can be inferred from the partial mortgage mechanism, believe that as QSD adoption increases, users will be more comfortable with a higher percentage of QSD supply being stabilized algorithmically rather than with collateral.

QIAN Second Generation Dollar collateral ratio refresh function in the protocol can be called by any user once per 30 mins at the initial launch. The protocol can change the collateral ratio in steps of 0.2% if the price of QSD is above or below $1. When QSD is above $1, the function lowers the collateral ratio by one step and when the price of QSD is below $1, the function increases the collateral ratio by one step. Both refresh rate and step parameters can be adjusted through governance.