On June 30th, 2022, the QuickSwap community voted in favor of introducing an isolated lending and borrowing market, which we built using Market XYZ’s build-a-market tool. We are thrilled to continue adding integrations that will power our DragonFi Ecosystem.
- On June 30th, 99.84% of QUICK and dQUICK holders voted to integrate an isolated lending and borrowing market
- All the details about how this lending and borrowing market will work and how it will benefit QuickSwap can be found here
- This market will increase economic activity on our DEX as well as revenue for stakers in the Dragon’s Lair and the QuickSwap Foundation
- The proposal received overwhelmingly positive support from the QuickSwap community
- The isolated lending and borrowing market will be added to QuickSwap’s new beta UI in the coming weeks
- QuickSwap reminds users to use all integrations with caution. While this tool can be incredible for generating yield, it doesn’t come without some risk.
- QuickSwap’s UI/UX will remain the same
Dragons spread their wings
When we introduced the governance discussion on June 20th to talk through this proposal and gauge the community’s sentiments, we were happy to quickly gain support from nearly everyone in our forum. That’s probably because adding this feature offers many advantages with little to no downside risk.
In bear markets, everyone we know is looking for ways to increase their yield opportunities. This isolated lending and borrowing market will not only allow liquidity providers to borrow against their LP positions while still earning trading fees, but it also provides the base layer to build many other DeFi tools to further compound value. What’s more, the fees generated from the lending and borrowing market will increase yield for stakers in the Dragon’s Lair and the QuickSwap Foundation (more on that later).
A few days after opening the discussion and with our community’s support, we moved to vote. On June 26th, we asked all eligible QUICK and dQUICK holders: Should QuickSwap Introduce an Isolated Lending and Borrowing Market?
That vote concluded today (June 30th, 2022) with 99.84% in favor. In total, approximately 20,032 QUICK from 67 wallets participated in the vote. Of the 20,032 total QUICK, 20 thousand QUICK from 65 wallets (~97%) voted in favor. Only 2 wallets (~3% of voters) with a combined weight of 32.1 QUICK opposed the proposal.
Now that the vote is final, Market XYZ and QuickSwap are working together to make sure the integration goes as planned so that QuickSwap’s users can get involved as soon as possible. We anticipate that this integration will be complete in the next couple of weeks.
What does this mean for me?
It doesn’t have to mean anything at all. Adding this feature to QuickSwap’s UI will bring new users, add key market infrastructure, and increase revenue to Dragon’s Lair stakers and the QuickSwap Foundation. But if you don’t want to use the isolated lending and borrowing market, you don’t have to.
For QUICK stakers, the lending and borrowing market will bring in additional revenue and increase APYs in the Dragon’s Lair. Each new feature we integrate will increase QuickSwap’srevenue and therefore benefit QuickSwap, QUICK stakers, and the QuickSwap community.
What advantages does having an isolated lending and borrowing market offer?
As we explained in our previous blog on the topic, featuring an isolated lending and borrowing market on QuickSwap will increase yield opportunities and give users the chance to raise funds without selling their favorite crypto assets. This will also give LP tokens added utility while enabling users to limit their exposure to risk by containing it to certain market pools.
Users who choose to borrow with Market XYZ will pay interest. The interest fees collected will be distributed as follows:
- 90% will go to the lenders
- 5% will go to Market XYZ
- 3.33% will be used to market buy QUICK and distribute to stakers in the Dragon’s Lair
- 1.67% will go to QuickSwap’s Foundation, which we use to fund our development and operations costs
We will publish a tutorial on how to use the isolated lending and borrowing market before its launch.
When will the Isolated Lending and Borrowing market launch?
The code is complete and QuickSwap is working closely with Market XYZ to complete the integration. We estimate that the isolated lending and borrowing market will be ready to launch in the next couple of weeks. As with any integration, unforeseen circumstances can get in the way and cause delays. We will provide updates on the status of the launch as soon as they’re available.
The DragonFi Ecosystem grows
When we developed our DragonFi roadmap, we made plans to build out QuickSwap as a One-Stop Shop for DeFi on Polygon, but it is up to you — the community — to vote and give approval for each new integration. With our PRDT Predictions Market, a license to integrate Algebra’s V3 ‘Concentrated Liquidity’ Model, and now an Isolated Lending and Borrowing market, our vision is starting to take form. The QuickSwap team is grateful for your support as we continue to build the future of DeFi together.
Let us know if you have any additional questions about the Isolated Lending and Borrowing market in the comments below, and join us on social media to stay up-to-date on all things QuickSwap — Polygon’s most established DEX.
Exported from Medium on May 2, 2023.