Technical Appendices
Smart Contract Architecture
Quantillon's codebase is structured around a modular Solidity framework, designed for upgradability, auditability, and composability. Core contracts include:
🔧 Core Smart Contracts
MintManager
Handles the conversion of ERC20 assets to QEURO at oracle rates, manages collateral routing.
VaultEngine
Oversees collateral deposits, DeFi deployment, liquidation triggers, and hedger margins.
YieldController
Applies yield share logic, calculates Yield Shift, and manages protocol fees.
GovernanceModule
Administers voting logic, fee toggles, and whitelisting of new vaults or oracle feeds.
All contracts are non-custodial, with critical functions gated through governance time-locks. Emergency pause mechanisms are included.
Oracle and Pricing Infrastructure
The protocol relies on Chainlink as its primary data oracle, with fallback nodes under Quantillon Labs. Oracle feeds are used for:
📊 Data Sources
EUR/USD spot rates
USDC price stability checks
On-chain collateral valuation (Aave, Maker)
🛡️ Three-tier Logic
Medianized price feeds across multiple sources
Heartbeat and deviation checks to detect anomalies
Fallback escalation using governance-mandated oracles
This ensures robust resistance to manipulation or downtime.
Yield Shift Formula
The dynamic yield redistribution follows a parametric curve governed by the ratio of hedger supply to QEURO demand.
📐 Mathematical Model
Let:
R = net available yield from collateral
H = % of target hedger pool filled
Yh = yield allocated to hedgers
Yu = yield allocated to users
Then:
Yh = min(1%, R × H × α)
Yu = R − Yh − protocol fee (10%)
Where α is a governance-defined coefficient that tunes market incentives. This creates an implicit rebalancing of protocol incentives and peg resilience.
Value at Risk and Stress Testing
Quantillon incorporates continuous monitoring of its financial health using:
📊 Risk Analytics
VaR (95%/99%) models on EUR/USD and TVL drawdowns
Stress tests assuming FX shock (+/- 10%), collateral yield drop to 0%, or Aave liquidity collapse
Daily simulations to validate liquidation thresholds and hedger margin adequacy
Results are logged on-chain and reviewed by both internal risk modules and external auditors. Public dashboards will visualize these metrics post-launch.
Compliance Interfaces
Though out-of-scope under MiCA, the protocol maintains a compliance-oriented posture:
✅ Transparency Measures
Public transparency of all vault mechanics, treasury flows, and governance changes
Voluntary disclosures issued by Quantillon Foundation
Audit trails for smart contracts and FX margin mechanisms
This hybrid approach supports future institutional integrations and legal adaptability across EU jurisdictions.
Quantillon's technical backbone is crafted not only for security and functionality, but also for auditability, regulatory interface, and long-term evolvability.
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