Although we are optimistic about the long-term development of the crypto market, we must recognize the current situation: crypto assets are still in the early developmental stage, where extreme price changes often occur, and the records show that a bear market could last several years.
Despite the involvement of a series of stabilization mechanisms in QIAN stablecoin, there is still a possibility that the debt auction gains cannot make up for the overall reserve asset adequacy ratio, when the market suffers from extreme conditions and long-term sluggishness. Under this circumstance, the entire QIAN stablecoin system will lose the support of its intrinsic value. In this case, we will discuss whether to launch global liquidation and shut down the QIAN stablecoin through community governance.Once the community agrees to close the QIAN stablecoin system, a global liquidation will be initiated.
In the global liquidation, the QIAN stablecoin system will first freeze all CSA, stop generating CSA, and then close oracle feed price. The last oracle feed price will be used as the quotation for the global liquidation. Now, the system state changes again. Based on the last quotation from the oracle, CSA (normal) holders will have the priority to first redeem their locked assets in the contract, and the system will manage the asset redemption operations. After the redemption of assets by CSA (normal) holders, if there is still a surplus of reserve assets in the system, CSA (alarm) holders will be allowed to redeem.
In the global liquidation, it is uncertain whether users can redeem all locked assets without losses. The probability of being able to redeem all locked assets follows CSA(normal)> CSA(alarm). Amounts of different underlying reserve assets, market price and other factors will have a comprehensive impact on the probability of a successful redemption.