Quintes is a DeFi protocol building the first perpetually appreciating asset called QNT, engineered to appreciate steadily at 18-33% annually. This is made possible through novel cryptonomic mechanisms, AI, and overcollateralization.

The Quintes team spent over two years developing the protocol due to the absence of sustainable high-yield solutions in crypto and traditional finance. Recognizing the huge demand for such solutions, the team aimed to address this critical problem by architecting a scalable and sustainable solution capable of maintaining a consistent, sustainable performance with billions in volume.

The Quintes solution is built upon a dual-token system, where QNT is the perpetually appreciating asset, and QTS is the native utility token:

QNT Token

QNT is an overcollateralized token designed to increase linearly in value annually at a high rate, such as 18-33%, utilizing multiple sustainable, scalable cryptoeconomic mechanisms. It is fully backed by wBTC, ETH, QTS, and stablecoins at a 200% over-collateralization rate, ensuring users can always redeem their QNT tokens for collateral assets.

QNT achieves consistent appreciation as its value is linked to its collateral backing. This is made possible through the Quintes protocol’s platform where users stake their assets and mint QNT. The protocol then deploys the collateral onto centralized exchanges to engage in proprietary spot-based high-frequency trading (HFT) using prediction modeling and machine learning.

Our system has a proven track record of achieving a 30-40% annual yield which meets the average performance of HFT firms — according to the CFTC, it’s 39.92% annually.

Here are the live results of Quintes’ HFT system over the years:

Aside from the strategy’s inherent risk management, the Quintes protocol uses off-exchange settlement mechanisms to mitigate the risks of centralized exchanges and employs other risk mitigation mechanisms such as partial liquidations, the reserve pool, and the treasury.

QTS Token

QTS, on the other hand, serves multiple utilities within the protocol, such as staked as collateral, staking to access incentives, “earning rewards”, and participating in governance. The value of QTS is derived from its utility within the protocol and is linked to the market capitalization of QNT, fostering a symbiotic relationship between the two tokens.

QTS’ value is based on two factors:

1. Its utility within the Quintes protocol.

   The utilities QTS performs in the protocol generate one-third of QNT’s market cap. The 3:1 ratio is the utility value of QTS. For example, a $1bn QNT market cap ≈ minimum of $333m for QTS’ market cap, meaning, the demand for QNT increases so does the demand for QTS.

2. Being a speculative premium.

   Like any token, stock, or asset in finance, speculation around future value encourages additional upward price pressure.

The Quintes protocol employs robust mechanisms to maintain QNT's stability and scalability, while QTS’ value is driven by its utility, QNT’s growth, and speculation.

A Proof of Concept demonstrating $QTS’ approach to increase token demand and create utility value.

The charts present tokens of existing protocols that implemented a similar token utility. As seen, there is a correlation between the TVL and the FDV of the token, showcasing an increased demand for the token with increased liquidity, proving the potential utility value of QTS.

Protocols implementing staking-to-access rewards token utility have a positive correlation between the demand for depositing to earn incentives and the token-staked-to-access incentives. Examples include radiant, Pendle, Velodrome GMK, Frax curve, and other ve-token models.

Facts about the protocol and $QNT mechanisms:

Appreciation, Collateral, and Redeemability

• Perpetual Appreciation: QNT is designed to appreciate at an annual rate of 18-33%.

• Overcollateralization and Backing: The protocol is overcollateralized and fully backed by crypto assets such as wBTC, ETH, stablecoins, and QTS.

• Redeemability: Users can redeem QNT with collateral such as wBTC, ETH, or stablecoins anytime.

• Directional Collateral: Quintes is fully backed by directional collateral, thus maintaining performance under all market conditions, and QTS has a limited supply, making it resistant to inflation.

Ethical and Sustainable Mechanisms

• Non-Dilutable Appreciation: QTS emissions, transaction fees, or protocol revenue do not serve as the source of QNT’s appreciation, making QNT non-dilutable from increased demand and maintaining performance.

• Ethical Appreciation: QNT’s subsequent and former buyers do not serve as the source of QNT’s appreciation, making it ethical and not a Ponzi scheme.

• Sustainable and Scalable: The protocol utilizes sustainable, scalable, and ethical mechanisms, ensuring that QNT’s price appreciation isn’t a result of trading activities or protocol revenue, making it scalable and sustainable.

• Shariah Compliance: The protocol’s mechanisms and operations are Shariah-compliant and compatible with Islamic principles.

Verification and Launch

• Stress-Testing and Verification: The protocol mechanisms have been extensively stress-tested for over 2 years and verified by an external 3rd party.

• White Paper Release: The white paper will be revealed in the next few weeks before launching the protocol.