QIAN is generated by users locking their crypto assets in the smart contract. In the initial stage, underlying assets will mainly be crypto digital currencies such as ETH and ERC-20 version of BTC. After a certain period of stable operation of the system, offline asset tokens with consensus will be considered to be includedas an issuance collateral.
For each crypto asset, the core parameters of the system configuration include:
Market price volatility Voli: Since crypto trading is highly frequent, the QIAN system will draw on RV (Realized Volatility) indicator, a common one on the international market currently, to define the volatility of crypto asset i (Voli). In the initial stage, Voli will be updated according to the quotinginterval of the oracle. Unlike options, the risk of the underlying assets forstablecoins can be effectively regulated through the recent RV, so Voli does not involve the prediction of future volatility.
Start adequacy ratio Qi,0:Affected by the market price fluctuations of each crypto asset, Qi,0is in a dynamic change. Inthe initial stage of QIAN, Qi,0 will be updated according to the oracle’s quotingcycle.
Current adequacy ratioQi,t:
Minimum adequacy ratio Qi,min：When the CSA of cryptocurrency i is lower than Qi,min, asset freezing will be triggered.
Alarming adequacy ratioQi,alarm：, When CSA is lower than Qi,alarm, analarm will be triggered and the user will be suggested to cover a margin call; However, if the user does take the suggestion, he can still withdraw his CSA.
Maximum mining volume: refers to the maximum amount of QIAN that one cryptocurrency can generate in the system;
is the total value of lockedcrypto asset i. Its quotecomes from the oracle and is updated regularly.
For a specific crypto asset i, if its amount available for miningis H, then
is the current market price of the cryptocurrency (from the oracle).
For the overall system, core parameters include:
Total Adequacy ratio Qtotal：
Minimum Adequacy Ratio Qmin: In the initial stage,Qmin≥ 90%is required, and it will be adjusted according to community governance procedures.
ObservationTime Before AuctionTauctionrefers to the intervalbefore the auction startsandafterthe adequacy hits Qmin.