# Frequently Asked Questions (FAQ) ### General Questions #### What is QUSDC? **QUSDC** is a fully reserved, decentralized stablecoin issued natively on the **QIE blockchain**. Each QUSDC represents **1 USDC deposited into the system**, enforced by smart contracts.\ QUSDC functions as an **on-chain receipt token** that proves USDC backing on a 1:1 basis. *** #### What does “on-chain receipt token” mean? An on-chain receipt token means: * QUSDC is issued **only when USDC is deposited** * QUSDC represents a **claim on that deposited USDC** * When QUSDC is burned, the USDC is released In simple terms: > QUSDC is proof that USDC has been locked in the system. *** #### Is QUSDC the same as USDC? No. * **USDC** is issued by Circle and backed by fiat dollars held off-chain. * **QUSDC** is a protocol-issued token on QIE that represents deposited USDC value. QUSDC depends on USDC for backing, but its **issuance, burning, and accounting** are enforced by smart contracts on QIE. *** #### Is QUSDC pegged to the US Dollar or USDC? QUSDC is pegged **1:1 to USDC**, and indirectly to the US Dollar through USDC. > **1 QUSDC = 1 USDC** The peg is enforced by protocol rules, not market incentives. *** ### Backing & Stability #### How is QUSDC backed? QUSDC is backed **100% by USDC**. * Every QUSDC in circulation corresponds to USDC locked as reserves * Tokens are minted only when reserves are deposited * Tokens are burned when reserves are redeemed There is no partial or fractional backing. *** #### Can QUSDC be over-minted? No. QUSDC cannot be minted unless the required USDC backing is deposited.\ Smart contracts enforce a strict **1:1 minting rule**. There is no admin key or discretionary minting capability. *** #### Is QUSDC algorithmic? No. QUSDC: * Does not use algorithms * Does not rely on incentives * Does not rebalance supply * Does not use price oracles Stability is achieved through **full reserve backing**, not algorithmic mechanisms. *** #### Can QUSDC lose its peg? Under normal protocol operation, QUSDC maintains its peg because: * It cannot exist without USDC backing * Redemption always burns QUSDC and releases USDC However, QUSDC indirectly inherits risks associated with USDC itself (issuer, regulatory, or fiat-layer risks). *** ### Decentralization & Control #### Is QUSDC centralized? QUSDC is **trust-minimized**, not centrally controlled. Decentralized aspects: * Permissionless minting and burning * Smart contract–enforced rules * Public on-chain transparency Centralized dependencies: * USDC issuance and fiat reserves exist off-chain QUSDC removes centralized control **where blockchain technology can**, and is transparent where it cannot. *** #### Who controls QUSDC? No single party controls QUSDC supply. * Smart contracts control minting and burning * Supply and reserves are publicly verifiable * No entity can mint unbacked QUSDC Protocol upgrades, if any, are expected to follow transparent governance processes. *** #### Can QUSDC be frozen? QUSDC itself does not include discretionary freezing logic. However: * USDC (the backing asset) may be subject to issuer or regulatory actions * This is an inherited risk from USDC, not QUSDC-specific behavior This dependency is openly disclosed. *** ### Minting & Redemption #### Who can mint QUSDC? **Anyone** can mint QUSDC. Minting is: * Permissionless * Open to all users * Enforced by smart contracts The only requirement is depositing the required USDC backing. *** #### Is there a minimum or maximum mint amount? This depends on protocol parameters and UI constraints.\ At the protocol level, minting follows simple 1:1 rules without discretionary limits. *** #### How do I redeem QUSDC? To redeem QUSDC: 1. QUSDC is returned to the protocol 2. QUSDC is burned 3. The corresponding USDC is released Redemption follows the same deterministic rules as minting. *** #### Is redemption always available? Redemption is always available **as long as protocol conditions are met**. There is no redemption queue, no manual approval, and no discretionary delay imposed by the protocol. *** ### Fees & Costs #### Are there fees for minting or burning QUSDC? Protocol-level fees may apply depending on: * Network transaction fees * Platform-specific configurations QUSDC itself does not rely on hidden fees or spread-based mechanisms. *** #### Does QUSDC generate yield? No. QUSDC is **not a yield-bearing asset** by default. If users want yield, they may use external DeFi protocols at their own discretion. *** ### Risk & Security #### Is there liquidation risk? No. QUSDC: * Is fully collateralized * Uses stable collateral * Does not involve borrowing or leverage There are no liquidation thresholds or margin calls. *** #### What happens if QIE network is down? If the QIE network experiences downtime: * Transactions may be delayed * QUSDC state remains intact on-chain Once the network resumes, QUSDC continues operating normally. *** #### Has QUSDC been audited? Audit status depends on project disclosures and publications.\ Users should always refer to official documentation for audit reports and updates. *** ### Ecosystem & Usage #### Where can I use QUSDC? QUSDC can be used across the QIE ecosystem, including: * Wallets * DEXs * DeFi protocols * Payment applications * Developer platforms *** #### Is QUSDC bridged to other chains? QUSDC itself is **not bridged**. Only the backing **USDC value** may move across chains when users choose to bridge. This design minimizes systemic risk. *** #### Is QUSDC suitable for long-term holding? QUSDC is designed for: * Stability * Predictability * Capital preservation However, users should always assess risks related to USDC, regulation, and blockchain infrastructure. *** ### Final Clarifications #### Is QUSDC meant to replace QIE’s native token? No. QUSDC complements the QIE native token by serving as a **stable unit of account**, while native tokens continue to handle governance, security, and incentives. *** #### What is the main goal of QUSDC? The main goal of QUSDC is to provide: > **A transparent, fully backed, on-chain dollar for the QIE ecosystem — enforced by smart contracts, not trust.** *** #### Where can I learn how to mint or redeem QUSDC? Step-by-step user guides are provided in the **User Guides** section of this documentation. *** ### Summary QUSDC is designed to be: * Simple * Transparent * Fully backed * Trust-minimized * Ecosystem-native This FAQ exists to ensure users understand **both the strengths and the limitations** of QUSDC clearly. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.stable.qie.digital/frequently-asked-questions-faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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