TL; DR:
- The three way partnership between QuickSwap, CelsiusX, and Polygon is officially underway
- Together, these three titans of finance are bridging the gap between CeFi and DeFi
- This partnership will bring millions of new users and added liquidity to QuickSwap and the Polygon Network and $10 million in rewards for liquidity providers of select pairs
- CelsiusX will continue focusing on bringing additional non-EVM native assets to Polygon
- Below, we will explain how we found the perfect threesome and the benefits for each participant
Courtship isn’t easy for 21st century dragons. In addition to contending with issues related to identity, protecting our treasure, and preferences, modern dragons also face an increasingly common request for group partnership. While many want to partner with QuickSwap and Polygon, we’re very picky about who we get into formal relationships with.
We’re thrilled that things worked out the way they did for QuickSwap, Polygon, and CelsiusX. To orchestrate a perfect threesome one needs to find the ideal partner, communicate clearly with everyone involved, and ensure that all partners are mutually satisfied with the arrangement. Here’s how we did it:
Finding the Ideal Partner
Given Polygon and QuickSwap’s massive adoption in the last year, it should come as no surprise that everyone is trying to get into bed with Ethereum’s leading layer 2 scaling solution and the principal DEX on it. Sometimes a new potential partner appeals to QuickSwap but not to Polygon or vice versa. For a threesome to really work though, “no partner should ever be ‘taking one for the team’”, says GQ Magazine. “If you are going to do a threesome, it is best that [everyone is] connecting with both partners somewhat equally, and everyone is into doing it,” explains Refinery 29.
Having been happily married for some time, no one knows better than QuickSwap how rare unicorns — who appeal equally to both Polygon and us — are. Luckily, QuickSwap’s mother is a unicorn, and that must have given us a leg up in attracting them. When CelsiusX approached us with an offer for a strategic three-way alliance, we knew that we had finally found our ideal partner and began negotiating the perfect threesome.
Communicating Clearly
Excited as we were to get hot and heavy with CelsiusX, we had to iron out several details before rushing into things. As many online guides that outline how to have a threesome will tell you, it’s all about communication and setting expectations. Before we agreed to this triad, QuickSwap, Polygon, and CelsiusX discussed:
- TVL and daily transaction volume (on QuickSwap, Polygon, and Celsius)
- Our goals and what we aim to accomplish (Bridging the gap between CeFi & DeFi)
- What each partner is willing to give to accomplish our shared goals
- What each partner is hoping to get from our union
- Assets that we would like to bridge to Polygon and list on QuickSwap in the future
- A safe word to indicate if we feel uncomfortable at any time during our threesome
- A timeline for how long we intend this partnership to continue (6 months)
- Potential for this three-way alliance to evolve into a longer term triad relationship
Although these conversations were uncomfortable at times, we knew that we had to have them and that having clarity would benefit all of us in the long term. We can’t disclose all of the details of our alliance just yet, but we can tell you what QuickSwap, Polygon, and CelsiusX will each give and gain from this triad experience.
Ensuring Mutual Satisfaction
With the launch of three new incentivized liquidity mining rewards pools (for cxADA-cxETH, cxDOGE-cxETH, and cxETH-ETH) on QuickSwap, the perfect threesome is now officially underway, but it’s far from over. CelsiusX intends to bridge over additional non-EVM native assets in time, which will then be incentivized on QuickSwap and available for use on other Polygon DeFi applications. As we mentioned earlier, it’s important that each partner is equally engaged in our three-way play to ensure the relationship’s sustainability.
What’s in it for QuickSwap?
As a DEX, liquidity and volume are very important to QuickSwap. Deep liquidity ensures low slippage for trades, while volume is how the DEX pays for operational expenses. QuickSwap charges a 0.3% transaction fee for each trade. 0.25% is distributed to the DEX’s liquidity providers; 0.04% is used to market buy QUICK and distribute to stakers in the Dragon’s Lair; the remaining 0.01% goes to QuickSwap’s foundation wallet, which is used to pay for our operations costs like development and marketing.
To fertilize QuickSwap, Celsius supplied $100 million in seed liquidity for the three initial incentivized pairs. Because of its deep liquidity, QuickSwap added cxETH as a routing token to minimize slippage for trades. In the few days that cxAssets have been on QuickSwap, the combined trading volume for the three incentivized cx pools is already approaching $1 million (total: $722,343; $265,143 cxADA-cxETH, $31,769 cxDOGE-cxETH, $425,431 cxETH-ETH, at the time of writing). That equates to a $2,167 in trading fees that QuickSwap has collected from the volume on the incentivized cx pairs. Of that, $1,806 has been paid to the pairs’ liquidity providers (which benefits QuickSwap’s community of yield farmers), $289 has been distributed to QUICK stakers in the Dragon’s Lair, and $72 has been collected to cover QuickSwap’s future operations costs. We are confident that in time, the CelsiusX pools will produce even higher volume, which will benefit QuickSwap and QuickSwap’s community in many ways.
QuickSwap’s community will also benefit from the $10 million of rewards that will be distributed to liquidity providers for select pairs over the next six months. Furthermore, the QuickSwap, Polygon, CelsiusX collaboration will expose QuickSwap’s many DeFi offerings to Celsius’ active community of over 1 million users.
What’s in it for Polygon?
As QuickSwap’s TVL and daily transaction volume increase from the CelsiusX pairs, Polygon’s TVL and transaction volume also increase. While gas fees on the Polygon network are negligible compared to the Ethereum mainchain, they aren’t nothing. MATIC stakers get a cut of every transaction on Polygon, which strengthens the community, incentivizes MATIC staking, reduces sell pressure on the MATIC token, and secures the Polygon network.
Following CelsiusX’s partnership announcement on January 24, 2022, Polygon’s TVL shot up from $4.45 billion to $5.64 billion on February 10th, according to DeFi Llama. With recent market conditions, Polygon’s TVL has since declined; however, it’s likely that Polygon’s TVL would be even lower now if it weren’t for Celsius users who moved their assets to the network.
Additionally, this perfect three-way pairing emboldens DeFi applications on Polygon like Qi Dao — a Polygon-native lending and borrowing platform that enables users to borrow against the value of their crypto without having to sell their assets. Qi Dao’s TVL increased from $94.07 million on November 24th to an all-time high of $320.6 million on February 17th, and that’s before cxAssets are even available on the platform! Stronger dapplications makes a stronger network.
Through this partnership, CelsiusX has already introduced two of crypto’s most robust communities to the Polygon network, which means more users. What if all of Cardano’s community and all of the DOGE community adopted Polygon? Can you even imagine? And that’s only the beginning. CelsiusX intends to focus on bridging over additional assets that aren’t native to the Polygon/Ethereum ecosystem with time and demand.
Finally, the CelsiusX partnership enables Celsius users to bridge select assets from Polygon to Celsius (and the other way around) without paying any gas fees. That’s a sharp improvement on the popular but expensive bridges that are commonly used now. While users can currently transfer only ADA, DOGE, and ETH between the Celsius and Polygon networks, plans are already underway to introduce more assets. This is a huge value add for Polygon’s community.
What’s in it for CelsiusX?
As the DeFi arm of the Celsius Network, it behooves CelsiusX to not only introduce their existing user base to decentralized finance, but to simultaneously expose CeFi’s merits to Polygon’s native DeFi enthusiasts. Launching the CelsiusX Bridge to Polygon has resulted in some of Polygon’s community adopting the centralized Celsius platform to earn yield on their assets. Further, this partnership enables Celsius users to earn a share of the $10 million in rewards tokens that will be paid out over the next six months as liquidity mining rewards on QuickSwap.
Additionally, CelsiusX’s free bridge from Celsius to Polygon will attract the large and organic communities that hold the bridgeable assets to Celsius’ platform. That could result in millions (or even billions) of new TVL for Celsius.
For their unparalleled unicorn service as an easy on and off-ramp and facilitator, CelsiusX gains what we all hope will be a long-standing partnership with Polygon and QuickSwap’s existing DeFi community. This brings CelsiusX one step closer to being DeFi native and achieving their ultimate mission — more users, more tokens, and more adoption for both the CeFi and DeFi worlds. More is always better!
Pulling off the perfect threesome isn’t easy, but it is possible. QuickSwap, Polygon, and CelsiusX prove that. Let us know in the comments if you have any additional questions about our threesome, and join us across social media to stay up-to-date on all things QuickSwap — Polygon’s most-established DEX.
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