QTL Token Mechanics & ERC-20 Smart Contract

The QTL Token

1.1. The QTL token is the Quant Lambda fund denomination unit. The value of QTL is given by the total Bitcoin amount under our management.

1.2. The base currency of reference for QTL is Bitcoin. As a practical example, if we stopped trading, the Bitcoin value of QTL tokens would be the same 3 days from now, but the USD value would keep changing in correlation with BTC/USD price.

1.3. QTL/USD price is easier to perceive than QTL/BTC (ex. $1 instead of 0.00024159 BTC) but it is not a good indicator of our past performance as a fund, as BTC/USD tends to fluctuate wildly.

1.4. We chose BTC as base currency over USD because we mark most of our trading profits as BTC and even if Bitcoin price has a complicated past, we are Bitcoin maximalists and believe that Bitcoin price has nowhere to go but up in the long run.

QTL Token Smart Contract

2.1. The QTL token is based on the ERC-20 Ethereum smart contract standard. This means the token is transferable and a spending allowance can be set for wallet addresses, making it compatible with decentralised exchanges and transferable by approved 3rd party addresses.

2.2. In addition, the QTL token has a defined Owner, can be Minted, Burned and a maximum token cap of 10,000,000 QTL is hard-wired into the smart contract.

QTL Token Smart Contract Owner

3.1. The contract Owner address can mint, burn and transfer tokens across all QTL token holders and appoint or revoke token Minter entities.

3.2. The QTL token contract has a built-in renounceOwnership function, which removes the contract Owner and its discretionary powers. This effectively makes the token fully decentralised and makes any post-factum administrative intervention on the contract impossible.
This functionality exists for the QTL token to become un-amendable in the future, should our users ever express concerns of excessive centralisation on our side and to be able to comply with the requirements of an eventual exchange listing of the token.

3.3. The Owner address is stored safely offline, completely isolated from any risk of compromise and is the token contract failsafe.
We think it's best to have an Owner address able to intervene in case of any unforeseen events or errors, at least for the first stage of the QUANTL platform.

QTL Token Minting, Burning and Transfers

4.1. QTL tokens are created(minted) for every new purchase and destroyed(burned) for every sale, to account for capital changes on platform wallets.

4.2. Minting is performed by a special Minter entity address, which is part of the QUANTL platform engine.

4.3. Burning of tokens is performed by a specially designated address, through the ERC-20 allowance mechanism, as all QUANTL platform wallets are set up with a pre-approved allowance for this address, in order to simplify the Ethereum transaction fee system for the QTL token.

4.4. Minting and Burning are done on platform wallets exclusively. If you wish to transfer tokens to your own ETH wallet address after purchase, you are free to do so. If you wish to sell tokens located on your own wallet, you will have to transfer the tokens to a platform wallet before doing so.

4.5. Every token transaction posted on the Ethereum blockchain requires a small fee to get processed. Because of this, the transfer of tokens between platform wallets is performed through the same mechanism as token burning and is currently free for our users, costs being supported by our platform.

The Token Value Update Event

5.1. The QUANTL platform can be summed up as two main event types that need to be matched with each other as accurately as possible:

  • QTL token value fluctuation, as a result of live trading activity
  • QTL token amount fluctuation, as a result of new purchase and sale orders

5.2. The Token Value Update event (or TVU) is our solution to pricing QTL tokens fairly and accurately for each and every token transaction that occurs.

5.3. Every 10 minutes, a Token Value Update event is executed, which performs the following tasks:

  • determines global trading profit/loss over the last 10 minutes
  • determines updated QTL price & platform commission
  • processes QTL tokens due on Platform Commission Wallet @ updated QTL price
  • processes purchase orders confirmed during the last 10 minutes @ old QTL price
  • processes sale orders placed during the last 10 minutes @ old QTL price
  • updates QTL supply with processed transactions and tokens due on Commission Wallet
  • updates all other reporting parameters accordingly

Tokenized Platform Commission and Profit

6.1. At every Token Value Update event, all trading account balances are interrogated and compared to their previous value.

  • 70% of the resulting difference is factored into QTL token price, representing profit(or loss) distribution among token holders.
  • 30% of the resulting difference is the platform commission.
    • If the commission is positive, we mint a corresponding number of QTL tokens to our specially designated Platform Commission Wallet.
    • If the commission is negative, we burn a corresponding number of QTL tokens from the Platform Commission Wallet.

The Daily Close Event

7.1. At the end of every day, several tasks take place during a 10 minute interval, from 00:00:00 to 00:10:00 of the following day, which are all bundled in the Daily Close Event:

  • the total Commission Wallet due amount for the day is minted/burned.
  • the Daily Activity Report is compiled and proof of authenticity posted to the Certification Authority contract.
  • expired unfulfilled purchase transactions are removed from the system.

The Platform Commission Wallet

8.1. As mentioned before, the Platform Commission Wallet is where QTL tokens corresponding to our trading commission go.

8.2. In order to spare unnecessary token contract transaction load, we keep count of all QTL tokens due on the Platform Commission Wallet throughout the day and perform a single blockchain transaction at the end of the day.
So if you notice a small intra-day discrepancy between the number of tokens on the Commission Wallet stated on the platform and the one on the Ethereum blockchain, this is the reason why.

8.3. To maintain QTL price accuracy at all times, the small intra-day QTL amounts due on the Platform Commission Wallet are taken into account by the platform as they happen.

8.4. We may, from time to time, sell tokens from the Commission Wallet, in order to purchase important things like avocados, potato skins or pants. It is our commission wallet, after all. This should not be of any relevance to our users or indicative of impending doom, which we know many crypto users are big fans of.

The QUANTL Pivate Investment Wallet

9.1. We are also clients of our own platform (the very first clients, in fact) and to keep things tidy and organized, we minted 40,000 tokens for ourselves, equivalent to the 9.663 BTC($40,000) we officially started trading with in a monitored environment on December 1st 2018 and which, at the time of writing are still on the platform trading accounts.

9.2. Should the Platform Commission Wallet ever reach 0 balance, our Private Investment Wallet will serve as buffer until the Commission Wallet becomes buoyant again.