$USDQ

What is $UDSQ?

$USDQ is a decentralized, algorithmic stablecoin that is soft-pegged to the U.S. dollar, designed to be both secure and scalable for use within the Quill ecosystem. It allows users to borrow against collateral, enabling them to access a stable, USD-pegged asset without relying on traditional financial systems or centralized intermediaries.

How is $USDQ different from other stablecoins?

Unlike many stablecoins that rely on centralized reserves or custodial assets, $USDQ is fully decentralized and algorithmically controlled. It's minted directly through user-deposited collateral in Quill’s protocol, leveraging zk-Rollup technology on the Scroll network to ensure low fees, high transaction speed and robust security. This approach minimizes centralization risks while offering a stable, DeFi-native currency.

What assets can be used to mint $USDQ?

Currently, users can mint $USDQ using select forms of collateral, specifically wrapped Ethereum (wETH), wrapped staked Ethereum (wstETH), Ether-Fi staked Ethereum (weETH) and Scroll's native token (SCR). Quill may expand its collateral types in the future, allowing for greater flexibility and security in collateralization options.

What is the minting process for $USDQ?

To mint $USDQ, users deposit an eligible collateral asset into their Trove on the Quill platform. Based on the value of the collateral and the protocol’s collateralization requirements, users can mint $USDQ up to a certain limit. This minting process is automated through smart contracts, providing a decentralized and transparent way to create stablecoins without relying on external approvals.

How is $USDQ pegged to the USD?

$USDQ maintains its USD peg through a combination of collateralization mechanisms and incentives for redemptions. By requiring users to hold sufficient collateral in their Troves, Quill ensures that there’s always backing for $USDQ in circulation. In addition, users can redeem $USDQ directly for underlying collateral at the pegged value, helping to stabilize its price even during market fluctuations.

Are there any fees involved in minting or redeeming $USDQ?

Yes, the following fees apply to minting and redeeming $USDQ:

• Interest Fee: When users initially mint $USDQ by opening a Trove, your interest fee is applied, 7 days upfront.

• Redemption Fee: Users pay a small fee when redeeming $USDQ back to the underlying collateral. This fee is designed to discourage excessive redemptions, helping to maintain stability.

These fees contribute to Quill’s long-term stability and ensure that the system can cover its operational and liquidity needs.

Can I stake $USDQ?

Yes, you can stake $USDQ on the Stability Pool in order to receive a pro-rata share of the liquidated collateral and of the interest paid by the borrowers.