After several months of development and testing by the QIAN community development team and community members, QIAN V2 Mainnet mining will be officially launched on April 2, 2021. On March 20, 2021, the QIAN V2 mainnet was deployed.
QIAN V2 is the world's first fractional-algorithmic synthetic assets protocol developed by the QIAN Protocol team.
In QIAN V2's minting operation, the algorithm part is regulated by KUN tokens. QIAN V2 is open-source, permissionless, and entirely on-chain, currently implemented on the BSC (Binance Smart Chain) network.
The goal of QIAN V2 is to establish a scalable, distributed, algorithm-adjusted synthetic asset management system.
Advantages of QIAN V2 are the improvement of user's capital utilization and a stable arbitrage mechanism through real-time operations as minting, redemption, buyback, and recollateralization.
QIAN V2 Main Features:
Higher fund utilization;
Earn interest on collateral by flash loan (online later);
Low fees (currently 0.05% for each transaction).
I. Preparation for QSD Minting & Redemption Operations:
It's recommended to download the Google Chrome browser and install the MetaMask wallet.
Note: Please ensure that you keep your MetaMask mnemonic and password in a secure network environment. If you lose your mnemonic, your assets will be completely lost.
Make sure you have a certain amount of BNB/USDT/BUSD/CAKE and KUN Tokens in your wallet before starting minting. Currently, KUN can be exchanged on Pancakeswap of Binance Smart Chain.
Ⅱ QIAN V2 operating environment setup steps are as follows:
- Open Google Chrome and enter the QIAN V2's official website:
-- click on the "QSD Labs" button.
- Switch the wallet to the BSC Mainnet environment: click the MetaMask wallet in the upper right corner of your browser -- click the Network Selection button, and select "Add Network". (See below)
Enter the following parameters and click "Save". (See below)
Network name: BSC Mainnet
New RPC URL: https://bsc-dataseed.binance.org/
Chain ID: 56
Browser URL: https://bscscan.com/
Switch the network to [BSC Mainnet].
- How to add the token symbol in Matemask, and add the BSC Mainnet contract address of KUN/QSD/DBQ/KBT as follows:
"KUN Token": "0x1A2fb0Af670D0234c2857FaD35b789F8Cb725584",
"QSD Token": "0x07AaA29E63FFEB2EBf59B33eE61437E1a91A3bb2",
"DBQ Token":" 0x35a367f17Bc72fbe5FaF9cbE923E4eA05B8990cB",
"KBT Token": "0x0D1a5498acD3C8b86f29D68F10C7BE180e2fd9c5".
Take QSD for example: click MateMask -- "Asset" -- "Add Token" at the bottom -- "Custom Token" -- fill in the smart contract address of the "QSD Token" at the top -- click "Next", and the addition is successful.
- Click "QSD Lab" to enter the platform for QSD. Before mint QSD, select the "MAX SLIPPAGE" on the left toolbar to confirm the maximum SLIPPAGE (0%-20%) that you can accept.
Ⅲ Using QIAN V2 for minting and redemption
1. Click "mint" on the left toolbar -- select the coin in "MINT METHOD", "BNB/BUSD/USDT/CAKE choose one of those four" + "KUN" -- you can see "0.05% Minting Fee" (Take BNB/BUSD/USDT/CAKE as a unit) -- "YOU RECEIVE".
Note: The Collateral Ratio at this time is 68.75% (which means 68.75% value of BNB to be locked and 32.25% of KUN to be burned by QSD mint), and the QSD market price is $1.0408. (The higher the price of KUN, the more money is released!)
2. Authorization: Authorization is required for entering "mint" for the first time. Click "Authorize KUN" at the bottom,Matemask pops up the page (see the picture below), click" Confirm ", here you will need to pay the authorization fee of 0.18 US dollars (0.0007 BNB).
3. Mint: according to the number of "BNB/BUSD/USDT" + "KUN" just filled in, click "mint" at the bottom, and the Matemask page pops up, showing "Mortgage Quantity" and "Gas Fee" as well as the "Total" amount.
For example, the BNB consumed in this operation is 0.09135 of the collateral , the GAS FEE is 0.009892 BNB (based on the price of $261.5146 of BNB, the GAS FEE of this operation is about $2.587), and the total number of BNB consumed in this operation is 0.101242 BNB.
- Wait for 0-3 minutes, and the "Transaction Status: Casting Successfully" pops up, When you see this message, the coinage is completed. You can check the number of QSD in "My QSD" at the top right corner of the page.
Ⅳ QIAN V2 redeem operation :(use QSD to redeem your "BNB/BUSD/USDT" and "KUN")
1. Authorization operation: click " redeem " on the left toolbar -- enter the number of "QSD" -- select the currency to redeem and click "Authorization" (" Authorization "is required for the initial redeem);The MateMask authorization page will pop up. Click "OK" and wait for 0-3 minutes. "Authorization Status: Authorized Successfully" will pop up.
Note: Authorization here costs US $0.18 (0.0007BNB).
2. Redemption operation: after the successful authorization, the "Redemption" button will appear on the right side; Click "Redeemable" -- Matemask pops up (here "Contract Interaction" is 0, Gas Fee is 0.009892 BNB," Total amount"is 0.009892 BNB) -- click on "Confirm "-- wait 0 to 3 minutes, and" Transaction Status - Redeemable Successful " will pop up.
At this time, the proportion of collaterals is 97.75%, that is, 97.75% were redeemed as collateral (in this example, BNB). 2.25% of KUN will be redeemed in the form of KBT (Kun Buffering Token, used for carrying and buffer algorithm to adjust release).
The redemption fee is "0.45%", which is reflected in the amount of redeemed pledges and KUN respectively. Use 10 QSDs for example: 10× QSD currency price ×0.45%= USD value of deducted commission fee, USD value of deducted commission fee ×97.75%÷ currency price of pledge = quantity of deducted pledge, USD value of deducted commission *2.25%/ currency price of KUN = quantity of deducted KUN.
3. Extraction: Click the "Extraction" button at the bottom right -- Matemask (Gas Fee 0.009892 BNB) pops up. Click "Confirm" -- wait 0-3 minutes, and "Transaction Status: Successful Extraction" will be displayed.
V. Buybacks & Recollateralization
Buybacks: The opposite scenario occurs when there is more collateral in the system than required to hold the target collateral ratio. This can happen in several ways: The protocol has been lowering the collateral ratio successfully keeping the price of QSD stable; Interest bearing collateral is accepted into the protocol and its value accrues; Minting and redemption fees are creating revenue.
This effectively redistributes any excess value back to the KUN distribution and holders don't need to actively participate in buybacks to gain value since there is no bonus rate for the buyback function, and KUN has expectations of value growth.（KUN BNB/USDT/BUSD)
Recollateralization and Buybacks are the opposite, and the two scenarios do not exist simultaneously.
Recollateralization: When the actual collateral ratio of the system is lower than the nominal collateral ratio, the system requires users to replenish the collateral. This process is called recollateralization.**( BNB/BUSD/USDT KBT）
Click " Buybacks & Recollateralization " on the left toolbar -- select the amount of Recollateralization BNB -- it can be exchanged for 25.9205 KBT-- click on "Re-Mortgage" -- click on "Confirm" (where the Gas Fee is 0.009892).