A governance proposal passed in June 2023 where the community voted in favor of providing 100% of Gamma V3 fees to the Foundation for 12 months to help fund QuickSwap growth initiatives.
Since then, QuickSwap has expanded its portfolio of ALM providers to offer more flexibility to LPs (Liquidity Providers). These ALM providers are essential to maximising efficiency and rewards for LPs on the QuickSwap DEX, giving users strategies for select token pairs to automatically keep their liquidity in range, auto-compound earnings, and more.
As of today, the ALM providers supported on QuickSwap are Gamma, Steer Protocol, DefiEdge, and ICHI. These 4 ALMs are directly integrated on the UI and provide strategies across multiple chains on the QuickSwap DEX - Polygon PoS, Polygon zkEVM, and Manta Pacific.
QuickSwap is continuing to build the necessary infrastructure and tech to help support its vision to fulfill both the Polygon 2.0 and DragonFi 2.0 narratives, deploy on more Polygon CDK Chains, launch it’s new CLOB DEX, launch it’s two new perps products, make improvements to the overall UI/UX, support general operations, and more.
To cover expenses to support new developments (i.e. building and maintenance of infrastructure etc.), additional funds will be required.
This proposal has been introduced for the community to decide if the QuickSwap Foundation should continue to receive QuickSwap’s share of the fees for a certain amount of months (detailed below and to be outlined in the vote) from each ALM provider’s V3 operations.
TL;DR:
- The 15% performance fee from QuickSwap’s V3 integration with the ALM providers (Gamma, Steer Protocol, DefiEdge, and ICHI) is currently split 50/50 between QuickSwap & each ALM provider
- Additional funds will be required to help QuickSwap continue to cover current expenses for development, marketing, operations, etc. to continue to make improvements to infrastructure, deploy new products, and more
- This proposal has been introduced for the community to discuss and vote on whether the Foundation should receive 100% of QuickSwap’s share of performance fees of each ALM provider’s V3 operations for a certain amount of months (details to be outlined below)
- The governance discussion has begun and will run until Sunday, July 14 at 2:00 PM UTC
- After the discussion concludes, the official Snapshot vote will go live from Sunday, July 14 at 2:00 PM UTC and conclude on Thursday, July 18 at 2:00 PM UTC
- After you’ve read this entire blog post, make sure to visit QuickSwap’s Reddit discussion forum to discuss further with your fellow community members
Outlining The Need For ALM Revenue Extension
QuickSwap is in a very important stage of growth and development. Innovation is at the forefront of the DEX’s mission as it continues to expand upon its DragonFi ecosystem, both building upon existing solutions and introducing new, advanced technology to make it the most comprehensive suite of DeFi products on the market.
New and exciting integrations and deployments are in the works (coming soon), such as the Hydra Perps DEX, QuickSwap Launchpad, and expansion to new chains, to name a few.
Despite strong conditions at the beginning of the year, the recent crypto market downturn in Q2/Q3 2024 has been a challenging time for many. QuickSwap revenue had started to grow when the market was heating up, based on volume and users visiting the website, but as the bull market has been seemingly delayed, revenue is down across the board for all Web3 projects. For these reasons, the Foundation is requesting an extension to the timeline for receiving ALM fees to keep building and growth initiatives moving forward.
Having the necessary funding is absolutely critical for QuickSwap to continue building and align to its goals to further innovation across the DragonFi ecosystem. QuickSwap has been incurring many additional costs as of recently. QuickSwap has welcomed several new devs and also been increasing its legal and regulatory expenditures to protect the community from aggressive regulations.
QuickSwap wants to be at the forefront of innovation on Polygon and keep leading the charge to establish itself as a true market leader, especially given increased competition from protocols in other ecosystems.
If the dragon community were to vote in favor of this governance proposal for the Foundation to receive 100% of QuickSwap’s share of performance fees for a defined period, the DEX will be better positioned to continue building the core innovative products for its Polygon 2.0 vision and pushing the boundaries even further. At that point the community would vote what to do with the revenue.
This defined period for the Foundation to receive 100% of the mentioned ALM provider fees will be outlined in the form of multiple different choices as noted below, which will be selectable options for voting when the governance vote goes live:
- 6 months
- 8 months
- 12 months
- Needs more discussion
If there are any additional thoughts about the options listed, please feel free to engage in the Reddit forum and discuss with the community.
Fee Structure & Terms
As outlined in the terms of QuickSwap’s agreements with the 4 ALM providers, 15% revenue generated from performance fees for V3 LPs and farms (identical across all supported chains) is currently split 50/50 between the Foundation and each provider.
If the dragon community was to vote in favor of this proposal, the Foundation would receive 100% of the above revenue generated from the ALM performance fees for a duration in the amount of months elected by the community via the options above, which will be outlined in the vote.
Once the agreed upon amount of months expires, the community will vote on what to do with the revenue next.
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 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 decentralized governance. QuickSwap’s future is in your hands, so make your voice heard!
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