Recap on CoinEx & QIAN Stablecoin Protocol AMA Dec 11, 2020
We are happy to share with you a recap from our recent AMA “Stablecoins for arbitrage” with David Lei, Software Architect of QIAN Stablecoin Protocol.
Here is the full transcript, which has been slightly edited for clarification.
Q1.As we are all curious, this project has an interesting name, QIAN. So why did you give it such a name? Is there some meaning behind it?
David: There is a special meaning of QIAN, as we said in the WhitePaper: QIAN represents the universe and money. But why? The answer is in the “Eastern Holy Bible: I Ching”, the “Hexagram Qian” represents the sky, the law of everything in the universe, which has the most positive energy and spirit. Based on this spirit, we named the first fully community-driven decentralized stablecoin protocol to be QIAN.
We hope that the great traditional culture of China can be understood around the world, and more cryptocurrency holders could be fans of traditional Chinese culture.
Q2.As the governance token of QUSD, what role does KUN play in the entire QIAN stablecoin protocol? How can community participants obtain KUN? How about its value capture ability?
David: The below charts showing the role of $KUN token in the QIAN stablecoin protocol.
$KUN is the governance token of the QIAN protocol, used to vote on QIAN community governance and maintain $QUSD’s price stability. As a governance token, $KUN modifies the key parameters of the QIAN protocol and controls the decision of community operation through voting.Community users can get $QUSD by minting, participating in liquidity mining, join $KUN governance mining, etc., or can directly buy it with $USDT at CoinEx.
$QUSD will introduce a stablecoin Flash Loan service and will use the Flash Loan income to buy $KUN in the market and keep it as a reserve. $KUN will also be burned through NFT tokens interaction and other ways to reduce the number of circulation. The DeFi project $AAVE just announced that their Flash Loan business exceeded $1 billion, and their charge fee is 9/10,000 each lending, which is a considerable income. Therefore, in the long view, $KUN can have a strong backup through flash loan business.
Q3.Before it was launched on CoinEx, KUN already had trading pairs available in decentralized protocols such as Balancer and UniSwap. What made you choose the centralized exchange CoinEx as a partner this time? After KUN is listed on CoinEx, what are the benefits for community users?
David: The QIAN stablecoin protocol is a decentralized, community-driven DeFi project. About listing issues, we will always choose the exchange that has the same community culture with QIAN, we focus on transparency, and the exchange partner should meet the long-term development needs of the QIAN community.
After communication, we are very happy to find that CoinEx meets the QIAN community standards in terms of global influence, product quality, operational transparency and compliance, and both of us are also highly compatible in the concept of community development. Therefore, QIAN governance token $KUN chose to get listed on CoinEx, and carried out events such as deposit, trading competitions, and airdrops.
Currently a total of 50,000 $KUN tokens for everyone to share, welcome to get $KUN!
Q4.As we know, the generation of QUSD is a process of implementing the “currency swap agreement (CSA)” between users and smart contracts, so stablecoin minters need to lock in mainstream digital assets such as ETH and BTC to QIAN smart contracts before they can get the anchored QUSD stablecoin. Under unilateral market conditions, CSA holders may face collateral liquidation issues like in the case of MakerDAO. So what are the privileges for CSA holders? How can CSA holders create benefits for themselves?
David: You asked the core mechanism of QIAN and QUSD. ”Currency Swap Agreement (CSA)” like the CDP mechanism of MakerDAO. Users only need to lock the excess tokens into QUSD’s smart contract without paying any interest. So don’t call it lending but a currency swap agreement is better. CSA of QIAN stablecoins are considered as a proof of currency swap between the smart contract and the cryptocurrency holder, this is the reason that we name the smart contract under this mechanism CSA, Currency Swap Agreement.
As a CSA holder, you can generate $QUSD stablecoins within the quota range. In order to encourage everyone to mint $QUSD, the QIAN project has launched a six-month minting and mining reward events starting on October 23, 2020. Minters who only need to mint $QUSD can get $KUN according to the types of minted assets and the amount of $QUSD generated.
Q5.The charm of DeFi lies in its decentralized characteristics that can improve transaction efficiency while ensuring that each step is open and transparent. Although the private key is in the hands of individuals, asset security can also be guaranteed. This June, however, constant hacker thefts amid the DeFi boom have once again warned investors of the security risks facing DeFi smart contracts. What will you do to ensure the safety of users’ assets locked in QIAN smart contracts?
David: This picture shows the major DeFi security accidents of this year. Unlike ordinary DeFi applications, the base layer of the QIAN stablecoin protocol uses two core technical architectures: APEC, an extended component BEAMS. The ultimate goal is to make the QIAN protocol be close to the development iteration speed and user experience of traditional internet products, while retaining our security features.
The picture above shows the BEAMS system, which includes three core components: global emergency lockdown, the GEL, cooperative automatic lockdown CALM, and multi-signature management key MAK.
If there is a problem with the contract, GEL can manually or automatically trigger the emergency lockdown, stop all inbound and outbound calls, and protect the security of the assets locked in the contract.
QIAN adopts bank-level risk control standards, uses an independent high-availability master-slave hot standby cluster, and operates 7x24 hours a day. CALM checks the status of the contract every 5 seconds and performs strict accounting and reconciliation of all crypto assets in the contract.
In order to avoid the risk of a single management key being lost or the key owner maliciously attacks the system, the smart contract of the QIAN stablecoin protocol uses a multi-signature mechanism. Currently, We choose the 3–2 multi-signatures , and as the platform’s locked assets increase, it will gradually increase to 5–3 or even 7–5 multi-signature mechanisms.
Through the above active/passive defense measures, the QIAN protocol can protect the security of users’ locked assets to the maximum security.
Q6.Community governance is another important link for DeFi projects. What is the governance model in this 100% community-based project? How to mobilize community members to take an active part in community governance?
David: QIAN has carried out a lot of preliminary work on the consensus build-up of the community, including each round of liquidity mining settings, collateral assets settings, etc. Each major decision is finally made through goverance voting after full discussion in the community.
QIAN has published a relatively complete community governance agreement. Everyone is fully aware that community governance is not a simple matter in practice, but The project sponsors, core developers, and community enthusiasts are persevering in their tasks.
An excellent DeFi project must have excellent community governance. Next, the QIAN community will have the governance committee works to form a volunteer system, unite a group of outstanding community developers, and bring in more external funds to build $KUN’s value consensus. All in all, QIAN’s community governance will continue to unswervingly promote, and become an excellent DAO governance project in the DeFi world.
Q7.Let’s talk about another issue that concerns the community. What is QIAN’s future development plan?
David: As a stablecoin asset, QIAN will increase the usage scenarios of $QUSD in the next step, and at the same time, through the combination of Flash Loan and high-quality ecology collaboration such as $YFII. At present, $KUN mining strategy is also going to join the $YFII Vault.
In addition to DeFi, QIAN will further explore the cooperation with the needs of the $BTC, $ETH miners to expand the usage scenarios of $QUSD; it is also planning to use $QUSD in the transaction of NFT tokens. In short, there are a lot of things that QIAN needs to do in the future. QIAN needs more outstanding talents to join the QIAN community to build community consensus together.
Q8.Last but not the least is a popular topic recently. In your opinion, how will Ethereum 2.0 influence the development of DeFi?
David: According to the technical architecture of Ethereum 2.0, in the 2.0 era, the Ethereum network will create a group of shards. Sharding is a method used by Ethereum 2.0 to expand the network performance to meet growing user demand. Its work is similar to cutting blockchain into small segments.
In Ethereum 2.0, judging from the aspects of composability, efficiency, total assets, etc, all DeFi applications will eventually be on a single shard, and they will gather together to form a huge, crowded “DeFi City”, it is certain that the transaction volume, the number of DApps, and the number of users of the DeFi shard will far exceed other Ethereum shards.
Therefore, in the era of Ethereum 2.0, DeFi DApps will not have to worry about other Ethereum operations occupying their own computing resources. It can be predicted that the gas consumption of DeFi DApps will be lower than it is now, and the speed will be improved. By then, DeFi will be in a real natural trend of the digital world, I’m looking forward to the arrival of Ethereum 2.0.
Questions from AMA Stage 2:
Can you explain about flash loan business, what are the benefits for users?
David: Flash Loan is a proven tool to boost the income of DeFi protocol such as AAVE and Uniswap, before QIAN project’s official launch, the whitepaper of QIAN protocol has already listed Flash Loan as a source of profit.
Just as the link here shows, I recommend everyone here go to read this post about Flash Loan.
After one month running of the QUSD protocol, over 8 million backed assets are now locking in the protocol of QUSD, these assets can bring profit by Flash Loan, once the TVL of QIAN protocol grows, the Flash Loan service ability and following income will also grow.
All the income of Flash Loan will be used to buy KUN token in the market and reserve them in the Vault smart contract as emergency fund, with the continue running of Flash Loan, KUN token price will get strong support in the future.
What is the strategic planning put in place for marketing KUN to adopters in the crypto space?
David: The circulating supply of QUSD is affected by factors such as the type of underlying crypto assets, mining revenue, and usage scenarios, among which the type of underlying crypto assets is undoubtedly the most important.
So we are going to add more outstanding tokens as collateral assets of $QUSD, with the support of Flash Loan, we can not only get more users to adopt $KUN but also the growth.
Could you give us an overview of the tokenomics? Is the token designed to rise and fall with the success of the platform, and does it include any scarcity paths such as stake, store, or burn?
The $KUN token is 100% mined and minted, yes, it will get strong support with the growing TVL of QUSD by the Flash Loan, and also by more and more people to join in the community governance voting.
Besides, we designed a series of NFT tokens which can be minted with $KUN token burning, the detailed activity plan will be online soon with the community, this KUN-NFT event will be on line this Christmas.
What is the circulation supply of KUN. It’s not mentioned on coinmaket cap.
The circulation supply of $KUN can be find with the token smart contract address in Etherscan, here are the smart contract of $KUN ERC-20 and $KUN BEP-20:
ERC-20 $KUN: 0x65d9bc970aa9b2413027fa339f7f179b3f3f2604
BEP-20 $KUN: 0x1a2fb0af670d0234c2857fad35b789f8cb725584
Supply of ERC-20 $KUN is 779,956.09976 now
Supply of BEP-20 $KUN is 845,129.824761 now.
What issues and products does KUN trade currently focus on developing? What are the technical priorities that KUN trade puts on top?
If an ordinary user, not an institution, how can he get KUN trade tokens on the market as quickly as possible? As far as I know, KUN trade will return KUN based on the quality and quantity of the order. What are the benefits of this?
$KUN is the governance token of stablecoin $QUSD, currently the technical priorities that $KUN puts on top is the Flash Loan adoption, and a GARCH Model for Risk Control, these are very important to the QUSD stability and QUSD minters’ efficiency-security balance.
Is there any other way to get KUN except LP mining?
CoinEX：KUN/USDT, this is the best way to trade $KUN now, we highly recommend it.
Uniswap：KUN/QUSD、KUN/USDT (will online soon)
Pancake (BSC)：KUN/QUSD、KUN/USDT (will online soon)
Unisave swap: KUN/USDT (will online soon)
QIAN is a stablecoin protocol. Users can inject encrypted assets (such as ETH, HBTC, WBTC, USD stablecoin, mainstream exchange platform token, etc.) into the protocol and lock it to mint the stablecoin in the QIAN protocol. KUN is the governance token of the QIAN stablecoin protocol, used to vote on QIAN ecological governance and to maintain QIAN price stability.
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