DeFi’s been flying under the radar this crypto cycle, but it’s poised for a comeback - and a big one could be on the horizon.
QuickSwap has always been fully committed to bringing the best and most innovative DeFi experience to its users, not only through the actual DEX but also via extensions to other ecosystem partners.
Now it’s time to take things to the next level and broaden the horizon even further.
Introducing StratEx Finance, an advanced DeFi protocol designed to revolutionise yield optimisation and risk management through their strategy marketplace, allowing users to access various investment strategies tailored to different market conditions and risk profiles.
The QuickSwap community has a huge opportunity to help bring StratEx to market by investing in their builders round and forming a strong alliance through a strategic investment, in which the details will be outlined in this proposal below.
Next Steps:
- To begin, the governance discussion on the official QuickSwap Reddit will run until Monday, April 7 at 7:30 AM UTC
- Once the Reddit discussions finish, a formal Snapshot vote will begin and run until Friday, April 11 at 7:30 AM UTC
- Once you’ve read this entire blog post, make sure to visit the official QuickSwap Reddit discussion forum to share your perspective with your fellow community members here: https://www.reddit.com/r/QuickSwap/comments/1jr6kgk/governance_proposal_investment_support_for/
What Is StratEx?
StratEx is a marketplace of complex, insurable, multi-layered DeFi strategies created by independent third-party strategists that even novice users can execute with just one click.
These strategies feed multiple aggregated vaults, initially StratUSD, StratBTC, StratETH, and StratPOL, providing the best risk-adjusted return in each category. The aggregated vaults can then be tokenised for trading on the secondary market, giving the DeFi platforms at the heart of the StratEx ecosystem direct access to the millions of users trading on the CEX network. Visit https://www.stratex.finance to find out more information and read their documentation.
Benefits: QuickSwap x StratEx Integration
If QuickSwap were to make an investment in StratEx and establish a newfound partnership, the StratEx team would provide a custom white-labeled build for QuickSwap, allowing QuickSwap users to access their platform using a tab on the DEX interface.
This would be the first step on a journey to providing many other potential benefits as the partnership evolves, including:
Helping QuickSwap Expand to New Chains
StratEx will have an innovative, new, and exciting DeFi product to share with the industry. It will first launch on Polygon PoS, where TVL will start to build up on the chain - this will help serve as an initial case study to eventually bring the product to new chains and continue growing TVL within those ecosystems.
Overall, this will make QuickSwap more complete as a whole and build a case for it to expand to these other ecosystems (chains) as well, leveraging StratEx’s product.
Closing Deals with Funds/Institutions
StratEx is in talks and working with several liquidity funds, family offices, and other institutions. Through these connections, StratEx and QuickSwap will work together to close deals that will bring TVL to both protocols - both platforms will provide emissions and/or take other actions to close these deals in a mutually beneficial way.
StratEx has already received several commitments for TVL from various entities (more below) and is continuing to lock in more, which will serve as an additional bolt-on BD team for QuickSwap.
World-Class Developer Team
Protofire is the dev team behind building and managing StratEx’s frontend and backend infrastructure. Their team consists of various senior engineers and experts who have longevity and experience in the Web3 industry, and they have worked with 201+ projects, had 600,000+ unique wallets use their smart contracts, hit 35,000,000+ transactions, and achieved $13,000,000+ in TVL.
They’ve partnered with top Web3 names like Ethereum, The Graph, Balancer, Filecoin, Chainlink, plus others, and are committed to making StratEx a success with a seamless and optimal UI/UX.
$20 Million TVL - Soft Commitment
Various liquid funds have made a soft commitment of $20 million in initial TVL for the StratEx platform, with the potential to bring in more over time as the product/platform evolves. This includes Polygon Founder Sandeep Nailwal.
Increased TVL & Volume
StratEx utilises liquidity pools and assets within the QuickSwap DeFi ecosystem, leading to enhanced TVL (Total Value Locked) growth and volume on QuickSwap. StratEx will negotiate seed deals from liquid funds that can potentially benefit QuickSwap and its ecosystem. In this way, it’s similar to ALMs (Automated Liquidity Managers) like Gamma, Ichi, and Steer that have built on top of QuickSwap in the past.
Building Hooks (V4)
StratEx strategists would build strategies that enhance QuickSwap functionality, employing hooks to utilise out-of-range liquidity, allow for leveraged LP farming, delta-neutral ones, etc.
For example, StratEx could leverage V4 hooks for QuickSwap LPs (Liquidity Providers). If their liquidity in a specific pool falls out of range, it stops earning rewards until it’s back in range. With V4 hooks, any liquidity not in range could be deployed into one of StratEx’s DeFi vaults, meaning that position will automatically continue earning rewards. Once the liquidity either falls back in range or is rebalanced, the position will be automatically withdrawn from StratEx’s vault and redeployed into the original QuickSwap pool to keep earning rewards.
This would make QuickSwap and overall Polygon liquidity more efficient and provide higher yields than vanilla LPing.
Enhanced QUICK Token Utility
QuickSwap’s integration with StratEx will help build out new use cases for the QUICK token. One example is to build an insurance product that will insure both protocols, with other ideas also in the works. This insurance strategy could be backed by QUICK with a yield, giving QUICK additional areas for yield. This is particularly interesting as QUICK is now being burnt instead of staked in the Dragon’s Lair. Now, users could get benefits of the burn with additional yield from insuring vaults.
Exclusive Access for QuickSwap Users & More Complete DeFi Hub
StratEx has agreed to launch its pilot exclusively on QuickSwap, giving QuickSwap users early access to this new potentially industry-leading platform.
In addition, adding StratEx to the QuickSwap product suite would create a more robust and inclusive DragonFi ecosystem, adding to the DEX’s already innovative DeFi Hub.
More Efficient TVL
The QuickSwap x StratEx integration will help make platform TVL more efficient through various means, which would mean more overall volume as well. This will help bring liquidity (and manage more efficient liquidity) to QuickSwap.
This will be executed through hooks (mentioned above), ALM-specific products, and more.
For example, Gamma is an ALM product on QuickSwap that provides strategies for token pairs, auto-rebalancing liquidity when it falls out of range while also auto-compounding rewards to maximise liquidity efficiency. It’s been live on the DEX since 2023 and currently has $33,000,000+ in TVL, with over $51,000,000 in fees accrued.
Diversification of the QuickSwap Treasury
A QuickSwap investment in StratEx will help diversify its Treasury portfolio with an innovative, new product.
StratEx Token Emissions
Once the StratEx token launches, emissions will be provided to incentivise QuickSwap liquidity via the vaults.
Boost In User Base & Retainment
As StratEx’s product goes live and starts bringing in a new user base, QuickSwap and its DragonFi ecosystem will directly benefit from exposure on the platform. This means an entirely new influx of StratEx users will be directed to QuickSwap so they can explore the DeFi features that both platforms have to offer.
Co-Marketing
QuickSwap agrees to support StratEx with a co-marketing campaign ahead of their pilot launch to help raise awareness within the Polygon ecosystem.
Throughout the course of this partnership, both projects will also support each other (as needed) with co-marketing in the form of social media initiatives, campaigns, etc.
QUICK Token As Insurance + New Dragon’s Lair
StratEx will agree to use QUICK as its insurance token to start, meaning users who stake QUICK in select vaults will be eligible to receive insurance on their deposits. In addition, the QuickSwap Treasury will seed the initial TVL (using 3.5% of the QUICK token supply, or ~$1 million) to create a “New Dragon’s Lair.” In this regard, QuickSwap will serve as a first loss provider to protect other QUICK token stakers in this new Insurance vault.
Extra Revenue & Utility
The integration with StratEx will serve as an additional revenue stream for QuickSwap, while also providing additional utility (as mentioned above) for the QUICK token.
It will also make the QuickSwap protocol safer overall, thereby potentially attracting more TVL. There has been interest and requests from funds for this integration with StratEx, which could spark more interest in QuickSwap as a whole.
Proposal & Investment/Distribution Terms
To kickstart this partnership and mutually beneficial agreement, the QuickSwap Treasury would invest in the StratEx builders round via a token swap at $40 million FDV (Fully Diluted Valuation) which 100% will be allocated to the QuickSwap community. Other investors in the round include respected names like Orbs, CJN, IBC, and LDA.
The allocation to the QuickSwap community would be as follows:
- 100% of tokens will be given to QUICK holders
- 50% of this amount will be decided by the Foundation on the distribution method (via a syrup pool, airdrop, etc.)
- The remaining 50% will be decided through a separate vote
Options for QuickSwap’s investment in StratEx are below and will be listed in the governance vote for the community to decide:
- $200,000 investment, plus insurance vault seeding & activation of new "Dragon’s Lair”, given in 6 monthly tranches.
- No investment
Note that the $200,000 investment would be split into 5 tranches ($40,000 a month for 5 months).
The funds listed above would come from the QuickSwap Treasury and would be conducted as a token swap.
Join the Discussion
As always, QuickSwap community members are encouraged to participate in and contribute to QuickSwap governance discussions and proposals across all of QuickSwap’s online forums, especially on Discord & Reddit. As a Dragon, you are a valued community member and your opinion matters – but you have to participate in community voting procedures to make it count.
Critical decisions guiding QuickSwap’s strategic development will always be determined by way of decentralised governance. QuickSwap’s future is in your hands, so make your voice heard!