Ever since the community voted for a 1:1000 token split in March 2022, people have been flooding our social channels with questions about why there are 2 QUICK tokens, what the difference between them is, when New QUICK will be listed on CEXs, and when the Dragon’s Lair will switch over to offer New QUICK staking. We always said that the transition from Old QUICK to New QUICK wouldn’t happen overnight because we have to account for numerous factors.
In this blog post, we’ll answer some of the most frequently asked questions that arise on our social channels when it comes to Old and New QUICK. We’ll also explain more of where we’re at in the token split process.
- Currently, there are two QUICK tokens in circulation — Old QUICK and New QUICK
- The transition will take time, and there is no deadline for converting QUICK
- We have already converted liquidity mining rewards to only incentivise those who LP for New QUICK pairs
- Old QUICK can still be used for staking in the Dragon’s Lair, but that will soon change
- New QUICK can be used to stake in Dragon’s Syrup for alternative tokens
- As of April 2022, QUICK token holders can convert Old QUICK to New QUICK
- After you convert to New QUICK, you can’t ‘convert’ back, but you can ‘swap’ it back
- New QUICK is not yet listed on CEXs, but we are in the process of getting it listed
Why are there 2 QUICK Tokens?
There are two QUICK tokens because the community voted in favor of a 1:1000 token split in March of 2022. The community voted to increase QUICK’s supply by 1000x to make the token more appealing and bring its supply more in line with that of other DEX tokens.
What is Old QUICK?
Old QUICK is QuickSwap’s governance token that was originally launched in 2021, with a maximum supply of 1 million QUICK. At the time of launch, some team members believed that the scarcity narrative would appeal to a wider range than it did. As a result of QUICK’s low supply relative to other DEX tokens — like UNI, 1INCH, etc — when people saw it priced well over $100/unit, while UNI and other tokens ranged from $2–10/unit, they assumed QUICK was overpriced. This is called unit bias, and we explained it very thoroughly. It’s the reason that eight out of the top ten best performers last year started their ascent at under $1/unit.
What is New QUICK?
New QUICK is QuickSwap’s governance token, redenominated with a maximum supply of 1 billion QUICK. For every 1 Old QUICK a person is holding, they can convert it to 1000 New QUICK via our conversion contract. New QUICK is the same as Old QUICK, but its denomination is different. Thus, if 1 Old QUICK = $100, 1000 New QUICK = $100, and 1 New QUICK = $0.10. As you can see, the notion of holding more of something appeals to many token holders.
Maybe you are not impacted by unit bias because you understand market cap, but many do not. We spent 2021 trying to educate people about it, but the truth is that the return on the time spent is not worth it. The simpler solution was to create a new token with a larger max supply, and the community agreed with us. QuickSwap does not make unilateral decisions, and if the community had not supported the token split, we would not have done it.
Why does Old QUICK still exist?
Before QuickSwap’s community voted for a token split, Old QUICK was integrated into all of QuickSwap’s smart contracts, lending and borrowing platforms throughout Polygon, and listed on centralised exchanges like Binance and Coinbase. Moving away from those integrations takes time, and we are working on it.
Is Old QUICK the same as New QUICK?
In essence, the token has the same value and the same use cases, but it has a different denomination. Technically, New QUICK and Old QUICK are different tokens; however, they have the same core functions:
- Providing liquidity
- Yield farming
- Participating in IDOs
The major notable difference (for now) is that New QUICK can be staked in our Syrup Pools to farm participating tokens, while Old QUICK can be staked in the Dragon’s Lair to earn more QUICK (more on that later).
What can you do with Old QUICK?
Old QUICK still has a lot of utility. Holders can:
- Provide liquidity for pairs on QuickSwap and other DEXs to earn a portion of the trading fees
- Vote on governance proposals
- Lend or borrow against the value of their QUICK on outside platforms
- Stake Old QUICK via the Dragon’s Lair to earn QUICK rewards
- Participate in IDOs, ILOs, etc
Additionally, Old QUICK is still available for trading on many CEXs. We will keep you posted on our latest talks with CEXs about new listings.
What can you do with New QUICK?
Eventually, New QUICK will become the only QUICK token, but for now, holders can use New QUICK to:
- Provide liquidity for trading pairs on QuickSwap and other DEXs to earn a portion of the trading fees collected
- LP for select New QUICK pairs on QuickSwap to earn a portion of the trading fees and liquidity mining rewards, which are currently paid in dQUICK, which is Old QUICK’s staked representative token
- Vote on governance proposals
- Stake New QUICK via Dragon’s Syrup Pools to earn rewards in other participating tokens
- Participate in IDOs
Should I hold Old QUICK or New QUICK? Which one is better?
We don’t have a great answer for you on this one because there are advantages to each. Therefore, it depends on what you want to do with your QUICK.
- If you want to stake your QUICK in the Dragon’s Lair to earn more QUICK, you should hold Old QUICK.
- If you want to stake your QUICK in Syrup Pools to earn yield via other tokens, you should hold New QUICK.
- If you want to provide liquidity for pairs to earn a portion of the trading fees plus a portion of select pairs’ liquidity mining rewards, you should hold New QUICK
- If you want to trade QUICK on centralised exchanges or have CEXs hold your QUICK for you, you should hold Old QUICK
- If you want to arbitrage Old QUICK and New QUICK to take advantage of price disparities in the market, you should hold both
Please be aware that after we update all rewards and staking mechanisms, Old QUICK will have no more utility and there will be no incentive to hold it. We will inform the community before making any changes.
Why don’t we switch directly to the New QUICK?
Please bear in mind that transitioning from Old to New QUICK cannot happen overnight. Some holders may take their time before checking the latest updates on QuickSwap. We want to make sure that everyone understands the process, and that they have enough time to convert their tokens.
Technologically, we are ready for the split. We’re still waiting for a couple of things to happen before we can complete the split and move on with New QUICK and implement it in the Dragon’s Lair.
We are also considering numerous factors before we complete the split, such as how it would affect oracles and Old QUICK holders who don’t actively manage their funds.
When will New QUICK be listed on CEXs?
As of July 2022, Old QUICK is the only version of the token listed on centralised exchanges (CEXs).
We began the process of talking with CEXs and trying to get New QUICK listed before the governance vote was complete. Leaders from numerous exchanges agreed that the token split was a good idea and said that they had experience dealing with token splits. Unfortunately, the market conditions are radically different today than they were a year ago. When we told the CEXs that the vote was complete, many of them asked for astronomical fees or deposits to list New QUICK. Considering the current market situation, we do not want to give them that much control over the asset.
Please rest assured that New QUICK will get listed on centralised exchanges in the future. Meanwhile, you can still use the new version of QUICK on QuickSwap. This is much more important because QuickSwap accounts for approximately half of all QUICK trading volume.
When will I be able to stake New QUICK in the Dragon’s Lair?
The contract for staking New QUICK is complete. Technically, we’re ready to enable New QUICK staking; however, we have a few other factors to consider.
- We pay liquidity mining rewards in dQUICK that is currently correlated to Old QUICK
- Many liquidity providers do not actively manage their LP positions
- All LPs, regardless of which pair(s) they LP for, will have to unstake their LP tokens, withdraw their positions, redeposit in the new pools, and restake their new LP tokens to start earning New dQUICK liquidity mining rewards
- We will also be encouraging LPs to redeploy their funds when we launch our V3, which we anticipate will be in Q3 of this year
- We think it probably makes sense to postpone the New Dragon’s Lair launch until we launch the V3 so that LPs will only have to go through this process one time
What happens with Old QUICK when there is New QUICK?
When you convert Old QUICK using QuickSwap’s conversion contract, the smart contract burns your Old QUICK and gives you New QUICK. Eventually, all Old QUICK will be burnt.
Let us know if you have any additional questions about how to convert and use old and new QUICK tokens, 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.