For years, QuickSwap has provided its users with a first-rate UI/UX for swapping ERC-20 tokens on Polygon, allowing seamless trades at fast speeds and minimal gas fees. Especially in today’s DeFi landscape, users are demanding better prices and trading routes, lower gas fees, and a smooth experience - the space is evolving and becoming more sophisticated, and DeFi protocols need to follow suit.
The QuickSwap DEX aims to continue to raise the bar and add new, intuitive features to not only optimise performance but also provide better execution prices, fast speeds, and lower gas fees for end users. Doing so will attract more liquidity and volume while elevating the overall trading experience.
That’s why QuickSwap is asking if the community would like to implement QuickSwap Liquidity Hub. The QuickSwap Foundation is researching and developing this with Orbs Network. QuickSwap Liquidity Hub is an advanced decentralised and public blockchain infrastructure designed to enhance the capabilities of EVM and non-EVM compatible smart contracts, and will drastically improve the swapping/trading experience on the DEX. QuickSwap has already worked with Orbs on some features including TWAP and Limit Order trades, which have created an enormous value-add to users and attracted significant trading volume.
The purpose of this governance discussion is to ask the community if QuickSwap and Orbs Network should launch this QuickSwap Liquidity Hub on the DEX and to decide on the fee structure between all parties.
- Orbs Network would like to build and deploy a Liquidity Hub on QuickSwap, expanding its current product line with the DEX
- QuickSwap Liquidity Hub would optimise 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 Discord & Reddit will run until Wednesday, September 6 at 12:00 PM UTC
- Once the Discord & Reddit discussions finish, a formal Snapshot vote will begin and run from Friday, September 8 at 12:00 PM UTC until Tuesday, September 12 at 12:00 PM UTC
What is QuickSwap Liquidity Hub?
QuickSwap Liquidity Hub is a new infrastructure protocol that would bring aggregated liquidity to the DEX by sourcing liquidity above and in addition to the AMM (through other decentralised protocols), leveraging an optimisation layer to enable more favorable execution trading prices, gassless fees, and more.
By tapping into multiple external liquidity sources, Orbs Network’s Liquidity Hub infrastructure would allow QuickSwap to process trades far more efficiently without having to go directly through the AMM for all trades. This would be a huge win-win for users, as they would suffer far less price impact executing trades through QuickSwap Liquidity Hub than in the past. It could also be plugged into aggregators, potentially bringing new volume that we otherwise would not have received.
Below is a high-level diagram of how QuickSwap Liquidity Hub would function:
The core concept here is to expand QuickSwap to include many possible decentralised trade routes as seen in the above graphic. In the event that QuickSwap Liquidity Hub’s other options can’t process the swap at a better price than the AMM, then the trade will be routed through the AMM itself as the heart of the DEX, meaning users receive the very best price no matter what the scenario. Using QuickSwap Liquidity Hub only gives them a better UI/UX.
In addition, the product is built on the backend and will not be visible to users when making a swap, meaning it’s as close to a native experience as it gets. Users will enjoy swapping on QuickSwap like they always have but will only receive a net benefit on their trades.
Here is a quick summary of the unique features and benefits QuickSwap Liquidity Hub brings to the table:
- Better Price Execution: Trades executed on QuickSwap Liquidity Hub result in better overall prices for users
- Gassless 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.
Proposed Fee Structure
Both QuickSwap and Orbs Network will receive fees derived from swaps/trades executed through QuickSwap Liquidity Hub.
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.
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.
As always, 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!