The protocol’s underlying mechanisms are designed in a way to ensure a peg of QUARTZ:UST is achieved, and once achieved, it is maintained to establish $QUARTZ as a mirrored, liquid asset to $UST. Protocol accomplishes this by introducing unique economic and game-theory centric dynamics into the market through its three tokens.
Our main goal is a bit different than other Tomb forks – we aim to contribute to a bigger ecosystem by increasing $UST liquidity on Harmony. We’ll be pegged to a stablecoin and this will require us to invest our DAO fund to bring back profit to the protocol.
How does the protocol work?
Quartz.defi protocol is based on a series of complex interactions, with the behaviour of multiple stakeholders deciding the pricing dynamics of the multiple tokens of the ecosystem.
- When QUARTZ price is over the peg (like it is expected it will be for the initial few weeks/months of the project), new QUARTZ are minted to drive the price down. These new QUARTZ are allocated to QSHARE holders in the boardroom, thus staking QSHARE in the boardroom makes the most logical sense during this period.
- When QUARTZ price is at the peg, QUARTZ holders can use the QUARTZ-UST LP to increase their yield. At this point, new QUARTZ will stop getting minted, and each investor’s QSHARE will drive voting rights to have a say in the governance of the platform through DAO.
- When QUARTZ price drops below the peg, investor’s strategy should lean towards buying QBOND using QUARTZ. The QUARTZ used to buy QBOND will be burned, which reduces supply of QUARTZ and brings its price back to peg, at which point investors can sell QBOND to earn profit.
What are the three tokens of Quartz.defi?
Quartz.defi’s multi-token protocol consists of the following three tokens and each plays a critical role in establishing this protocol:
- Quartz.defi Tokens ($QUARTZ) – The QUARTZ token is designed for use as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain QUARTZ’s peg of 1 QUARTZ = 1 UST;
- Quartz.defi Shares ($QSHARE) – QSHARE token holders have both governance voting and ownership rights of the protocol. Once DAO is established, they will play a crucial role in the governance of Quartz.defi. QSHARE can be staked in the boardroom to earn a part of minted QUARTZ as rewards;
- Quartz.defi Bonds ($QBOND) – QBOND’s main job is to help incentivise and reward users for ensuring peg during an epoch contraction period.
What is the point of Quartz.defi?
In the short term, until the peg is achieved, Quartz.defi is focusing on optimizing the protocol and creating wealth for our early investors through Farms and Boardroom.
Once the peg is achieved, the system’s mechanisms will focus on stability and consistency so that $QUARTZ can function as a mirrored, liquid asset to $UST.
A percentage of proceeds from this process go to the community owned DAO fund which plans to keep the protocol sustainable and healthy for the future.