Review on USDQ by Stephen Toluwani
USDQ isn't popular as it's very much limited in the QDAO project
According to what we are meant to believe, the USDQ is a stablecoin pegged to the US Dollars and is fully backed by Bitcoin considering it's decentralised nature which wouldn't permit holding it out in a bank. That's what the project is protested as but in my view, I see the USDQ as a stablecoin project begging for recognition for it's parent platform, the QDAO. For the issues as regarding security, the stablecoin is quite secured for it's smart contract according to the audits it received. Liquidity isn't much of a problem but being backed by bitcoin comes with its own disadvantages of which price or fluctuating value for it's pegged Dollars doesn't stay so. The stablecoin project is built on the Ethereum Blockchain too, making no much difference except that it can be seen for utilities surrounding minting for loans a user wants to take up. With the current value of Bitcoin at around $37,000 following a drawback of over 25%, USDQ, backed by Bitcoin trades for $0.956 instead of a stable peg of $1 which seems quite far off. The stablecoin isn't even popular in most cases as the total volume for today was just around $8. I don't see USDQ much as changing anything except for bringing back up the old stories on utility token for loan takeouts.
Pros
- The token contract has been heavily audited making it secured
- The stablecoin is decentralised, no government can stop it's creation (minting) or call back it's circulation
Cons
- The utility is within just QDAO. This makes interest in the token not less of an attention seeker
- Being backed by the value of Bitcoin means a not-so-stable stablecoin project
