Innovative Mint

Unlock USDQ liquidity with strategic collateral commitment

Overview

Innovative Mint is designed for users who wish to mint USDQ by locking non-stablecoin collateral (such as ETH, BTC, or select altcoins) for a defined term, while retaining exposure to potential price upside.

This mechanism enables users to:

• Access USDQ liquidity immediately；

• Retain strategic participation in collateral price performance；

• Contribute to protocol stability via fixed-term asset commitment。

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📋 Key Parameters

When initiating an Innovative Mint, users define the following:

Parameter	Description
Tenure	Lock-up period: typically 3 to 12 months
Capital Efficiency	Determines the % of collateral value that can be minted as USDQ
Strike Price Multiplier	Sets the strike threshold for exit or additional reward scenarios

These parameters collectively determine the amount of USDQ minted, the liquidation threshold, and the settlement logic at maturity.

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🔐 Lock-Up & Monitoring

• Collateral is held in a smart contract for the full duration of the term.

• The protocol continuously monitors asset prices against liquidation and strike thresholds.

• At maturity or under specific price movements, the position is settled under one of the three outcomes:

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Three Possible Outcomes

1. Collateral drops below liquidation threshold (any time)

Collateral is liquidated to protect system solvency. ✅ User keeps the minted USDQ. 🚫 User loses claim to original collateral.

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2. Price stays between liquidation and strike at maturity

User may redeem the full original collateral by returning the USDQ. This allows temporary access to liquidity without losing the asset.

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3. Collateral exceeds strike price

Collateral is exited and user receives an additional USDQ payout calculated as:

Additional USDQ = (Strike Price × Collateral Amount) − USDQ Minted

This outcome captures a predefined upside in USDQ terms, allowing the user to benefit from positive market movements within the protocol’s guardrails.

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Minimum Requirement

A minimum of $50,000 USD worth of eligible non-stablecoin assets is required to initiate an Innovative Mint.