At the beginning of September 2023, QuickSwap initiated a governance vote where the dragon community voted in favor of the DEX launching a Liquidity Hub on Polygon PoS.
There was a clear demand from the community for this Liquidity Hub, as it enabled even more seamless and efficient trades as part of QuickSwap’s movement to become a more sophisticated protocol with Orbs Network’s latest technology. Liquidity Hub is an advanced decentralised and public blockchain infrastructure designed to enhance the capabilities of EVM and non-EVM compatible smart contracts, allowing users to swap with zero gas fees and less price impact, thereby improving the trading experience across the board.
To date, QuickSwap Liquidity Hub on Polygon PoS has done $150,000,000+ in total volume. And these numbers continue to climb as adoption grows rapidly.
While the trading experience via QuickSwap on Polygon PoS has been drastically elevated due to the integration of this project, the DEX is looking to expand even further with this technology to establish a fiery presence across new network territory and continue dominating… all eyes on Ethereum.
Deploying a Liquidity Hub on Ethereum (as an aggregator) would further drive QuickSwap’s mission to launch several new ecosystem products on the Ethereum L1 mainnet. Ethereum is the largest DeFi ecosystem in the blockchain sector, boasting $46+ billion in TVL (Total Value Locked) and $1.7+ billion in daily volume, as of today.
Moreover, using Liquidity Hub as an aggregator could help build a strong use case for QuickSwap on Ethereum. Users would be able to facilitate swaps and trades across their favorite crypto tokens, directly on the dragon DEX with zero gas trades (at times) and better prices - with no frontend fee.
This proposal has been introduced for the dragon community to decide if QuickSwap should launch a Liquidity Hub that will serve as an aggregator on the Ethereum 1 mainnet, powered by Orbs Network.
TL;DR:
- QuickSwap would like to launch a Liquidity Hub on Ethereum, further pushing the narrative of expanding to Ethereum
- QuickSwap Liquidity Hub would optimize the swapping/trading experience on the QuickSwap DEX, enabling better execution prices, near-zero latency, lowering gas fees (to zero), and much more for trades that route through it
- QuickSwap and Orbs Network are asking the QuickSwap DragonFi community if QuickSwap Liquidity Hub should be developed & launched and, if so, to review and align on the proposed fee structure
- To begin, the governance discussion on the official QuickSwap Reddit forum will run until Wednesday, September 4 at 1:30 PM UTC
- Once the Reddit discussions finish, a formal Snapshot vote will begin and run from Wednesday, September 4 at 1:30 PM UTC until Sunday, September 8 at 1:30 PM 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
How Does QuickSwap Liquidity Hub Work?
The current version of QuickSwap Liquidity Hub (deployed on Polygon PoS) allows users to swap and trade with zero gas fees (note that this does not always occur - it depends on the trade and tokens swapped) while receiving better prices and faster speeds. Best of all, these extra benefits are provided to users without any change in the UI/UX - everything happens seamlessly in the background via Orbs Network’s technology.
To recap from the previous governance proposal, Liquidity Hub is an infrastructure protocol that brings aggregated liquidity to the QuickSwap DEX by sourcing liquidity above and on the AMM (Automated Market Maker) via other decentralised protocols. It does this by leveraging an optimisation layer to enable better execution prices for swaps, zero gas fees, and more.
Since Orbs Network’s Liquidity Hub taps into various liquidity sources, QuickSwap can process and execute trades for users in a far more efficient manner, since many of these trades would not need to route directly through the AMM.
Here’s a quick flow diagram of how it works at a high level:
Liquidity Hub has no downside if it’s integrated. If the trade that the user is requesting to execute cannot be fulfilled at a better price than the Solvers routing through Liquidity Hub provide, then the trade is instead routed through the AMM.
What does this mean? Users will always get the best possible price for their trades. Period.
Below are more features of Liquidity Hub in greater detail:
- Better Price Execution: Trades executed on QuickSwap Liquidity Hub result in better overall prices for users
- Zero Gas Trades: Users who trade through QuickSwap Liquidity Hub will receive gassless trades (they may incur some solver fees)
- Zero-Latency Execution: Transactions/swaps occur at zero latency, making them faster and more efficient
- MEV Protection: No losses from MEV would be incurred because orders are matched off-chain and absent of block producers. All funds that would have been lost would be redistributed to QuickSwap users and the DEX instead
- MetaMask Token Spending: Token spending approvals are enabled in MetaMask for Liquidity Hub users, and tokens will stay in their Web3 wallet until the trade processes. QuickSwap remains fully decentralised with all users always maintaining ownership of their own funds.
How Will QuickSwap Liquidity Hub Integrate & Function On Ethereum?
If this governance proposal were to pass, QuickSwap Liquidity Hub would launch on the Ethereum L1 mainnet, allowing the dragon DEX to continue pushing the boundaries on expansion into the broader Ethereum ecosystem.
With Falkor now deployed on Ethereum and Liquidity Hub as a potential future integration on DeFi’s largest Layer 1 network, QuickSwap is entering the Ethereum ecosystem with full force.
This means that QuickSwap’s Liquidity Hub would be available on 2 of the largest blockchain networks in the entire crypto space - Polygon PoS and Ethereum - for the dragon community to access and use at their fingertips.
QuickSwap Liquidity Hub on Ethereum would serve as an aggregator for swaps, tapping into other DeFi protocols as liquidity sources to ensure users on the dragon DEX get the very best trading prices and user experience.
One important item to note is that using QuickSwap Liquidity Hub on Ethereum provides better trades for users compared to other platforms because there is no frontend fee. This means that users get more bang for their buck, saving on costs given that other platforms often charge frontend fees.
Liquidity Hub would be available and displayed using the same sleek UI/UX as the current swap page - no changes would occur to the interface, as the underlying technology would be taking place in the background (exactly as the current version that exists on Polygon PoS).
Proposed Fee Structure
This section will outline the proposed fee structure between both QuickSwap and Orbs Network based on fees accrued from swaps executed through QuickSwap Liquidity Hub.
Note that this is the same fee structure that was approved by the community from the original governance vote in 2023.
The proposed fee structure and breakdown are below to be split across both communities. The split between Dragon’s Lair and Burn will be split down the middle, as this was what the community voted for with our last protocol launch, QuickPerps. This could be changed in the future with a subsequent community vote. POL stands for Protocol Owned Liquidity, and fees generated to this category would be used to build more Protocol Owned Liquidity managed and owned by the QuickSwap Foundation. Examples of this include QUICK/MATIC, QUICK/ETH, MATIC/ETH, QLP and other liquidity to deepen areas seen as strategic for the success of the DEX. The Foundation can use this and the APR generated to fund various areas of growth and development.
Fee Share:*
|
POL |
20% |
|
Quick DL: |
25% |
|
Quick Burn: |
25% |
|
Quick foundation: |
15% |
|
Orbs: |
15% |
|
Total: |
100% |
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 decentralized governance. QuickSwap’s future is in your hands, so make your voice heard!