Development Update #2
DAIQ has just passed its 1-week birthday, and we would like to present our newest update to DAIQ.
Before getting into it we would like to cover the reasoning behind this update. DAIQ is currently in a debt cycle, and we are dedicated to innovating new ideas to assist in reaching the peg. We already released an update to the standard coupons by allowing buyers to set custom epoch lengths. However, this still left one issue — the premium didn’t feel rewarding enough. Especially comparing the risk to a max epoch length versus 3 epochs.
The solution we have come up with is separating the coupons into three different formulas. You will be able to spend DAIQ and decide to buy low, medium, or high-risk coupons. Each category will use a different formula to determine the premium. High risk coupons will result in a much higher premium versus low risk. Let’s go into some math.
There are 3 different variables to take into consideration. We have debt ratio, TWAP, and epochs. The debt ratio is R. This is found by debt/supply. The TWAP is P and is the Uniswap Time-Weighted-Average-Price. The epoch variable is custom, and the purchaser decides the length.
High Risk (3 - 100 epochs):
Medium Risk (101 - 1000 epochs):
Low Risk (1001 - 100000 epochs):
Using this formulas with R 40%, P .10, and 3 epochs you would get a 360% premium. Changing to 101 epochs you would get 180.6%. 1001 epochs you would get 72.01%. Changing these variables around you can come up with the premium. This new update will allow a much higher premium in case you want to take a bigger risk.
This new update will be going to a proposal shortly via the DAO. In case it gets passed there will not be any swaps to this new system. Unfortunately, there is no way to parse how many DAIQ have been burnt with the current system. This means a swap is impossible. However, the older coupons will still function as they did.
We hope you are as excited as we are with this new coupon innovation. DAIQ team will continue to innovate and bring new ideas to the space. DAIQ does strive to be a decentralized protocol, so please remember it is governed by the community. Anyone with more than 0.5% DAO ownership has the ability to make a proposal!
Website : https://daiq.io/
Twitter : https://twitter.com/daiquilibrium
Telegram : https://t.me/daiquilibrium
GitHub : https://github.com/daiquilibrium
Coupon proposal: https://github.com/daiquilibrium/daiquilibrium-protocol/pull/6
Voting link: https://daiq.io/candidate/0x253086d1bc86e453ce08024055456fF3b88D2a89
