USDQ is one of its kind ERC-20 decentralized stable asset
- “should a ‘black swan’ event occur, i.e. a drastic fall in Bitcoin prices, Q DAO is sold on secondary markets.
- If they simply issued when Platinum Engineering needs funds to support USDQ then this is no different than the US government turning to the Federal Reserve to create new base money to fund its debt.
- This means that it avoids the risks of “legacy institutions” meaning the banks, trusts and other parts of the fiat financial system that fiat collateralized stablecoins rely upon to make redemptions.
- In contrast, holders of Tether depend upon the integrity of Tether’s bankers, Bahamas based Deltec Bank & Trust Limited.
- This matters in relation Mihaill Kudryashev’s suggestion that USDQ can be used for long term bets, for example on the price of oil using the using a popular decentralized platform Augur.
Read full article: medium.com