The crypto industry is in a state of crisis. With FTX and numerous centralised services going belly up, QuickSwap is prouder than ever to be a decentralised platform that never takes custody of users’ funds. The phrase “Not your keys, not your coins” has never been more poignant. While a broader industry shakeout doesn’t affect QuickSwap directly, public perception about cryptocurrency does. QuickSwap needs to increase revenue for stakers and for our foundation.
That is why we would like to discuss the possibility of building a specialised liquidity balancing/arbitrage tool for rebalancing the DEX’s liquidity. As this is extremely time sensitive, we need to move quickly and hopefully pass this proposal. Thus, the governance discussion will begin immediately (November 23rd, 2022). The snapshot for the vote took place December, 5th, 2022. The discussion will continue alongside the vote. The vote will conclude on December, 8th, 2022.
TL; DR:
- QuickSwap wants to increase revenue for the QuickSwap Foundation and QUICK stakers
- We would like to build a liquidity rebalancing/arbitrage tool
- If the community votes in favor of this proposal, we will share the revenue generated from the tool with QUICK stakers
- We value your input, which is why we’re introducing this discussion before conducting a governance vote; however, we need to move quickly because time is of the essence
- The governance discussion will begin approximately 24 hours before the vote and run alongside the vote for its duration
- Please read carefully through this document before forming an opinion
- Once you’ve read the full blog, visit our Reddit Discussion Forum to ask any questions and chat with the team and community: https://www.reddit.com/r/QuickSwap/comments/z312xl/quickswap_expedited_governance_discussion_vote/
Goal
Many transactions initiated with Dex platforms create profit opportunities.These opportunities are often difficult to see. Specialised trading algorithms and liquidity management tools can find them, execute, and increase users’ end result on the dex.
QuickSwap will integrate a feature to capture rebalancing profits and help eliminate malicious bots. QuickSwap will use the captured profits to fund the DEX’s treasury and pay for the costs of development while also rewarding QUICK token stakers.
Since people already arbitrage these opportunities anyways, this will not impact QuickSwap’s average user.
Let’s briefly talk about what is and is not likely to happen if the community votes in favor of this proposal:
Will:
- Offer better trades
- May slightly increase DEX volume
- Stop predatory MEV bots
- Capture profit for the DEX and QUICK stakers
Will not:
- Impact users in any way
- Negatively affect volume or liquidity
How would the profit sharing work?
If the community votes in favor of this proposal, QuickSwap will share the revenue generated from our liquidity rebalancing/arbitrage tool with QUICK stakers in the Dragon’s Lair. Initially, a larger share would be allocated to the QuickSwap Foundation to build a “war chest”; however, the ratio would change (in the community’s favor) over time.
The revenue split would be as follows:
- 20% Contracted builders (ie the protocol that built this technology)
- 20% dQuick holders
- 20% POL (protocol owned liquidity) QUICK token pairs mostly
- 40% QuickSwap Foundation, which we would use to hire more developers, strengthen our team, and build a strong treasury
Transparency
As a community driven project, QuickSwap has always aimed for transparency. That’s why if passed, the Protocol Owned Liquidity buys will all be open to the community, published once a month, and we’ll post the address of this wallet for tracking.
Once again, we would like to reiterate that the profit will not affect QuickSwap users in any way, unless they are stakers in which case, it can only benefit them.
Voting Eligibility
All governance decisions are important, and we want as many QUICK holders as possible to have a say. To do this, you must make sure you’re eligible to vote. To be qualified to vote, your QUICK must be held on the Polygon Network in a self-custodial wallet by the time of the snapshot on Monday, December 5th.
To be clear: Only New QUICK holders will be eligible to vote.
You are eligible to vote if you meet any of the following criteria:
- You hold New QUICK in a MetaMask Wallet or another Polygon-enabled wallet to which you control the private keys. Please note: To qualify, your New QUICK must be held on the Polygon Network and not on Ethereum, BSC, or any other chain.
- You deposited your New QUICK into the Dragon’s Lair and are now holding dQUICK in its place while you accumulate more New QUICK.
- You deposited your New QUICK into a Dragon’s Syrup Pool and are farming other tokens with it.
- You are providing liquidity for any New QUICK pairs on QuickSwap’s V3
You are not eligible to vote if:
- You hold Old QUICK
- You hold New QUICK on a centralised exchange wallet to which you do not hold the private keys
- You hold New QUICK in a self-custodial wallet (like MetaMask), but you keep that QUICK on Ethereum, BSC, or any network other than Polygon
- You are providing liquidity for an Old QUICK pair on QuickSwap, a New QUICK pair on QuickSwap’s V2, or for any QUICK pair on another DEX.
- You have deposited your QUICK or dQUICK in a vault outside QuickSwap to lend or borrow
Timeline
Because of the urgency of this decision, we are moving much faster than we typically do. The governance discussion will begin immediately on Monday, December 5th, 2022. The vote will begin approximately 24 hours later and run simultaneously with the discussion. The snapshot will take place at on Thursday, December 8th, 2022. The vote will begin immediately after the snapshot and run for 72 hours. Eligible QUICK holders will have the opportunity to cast their votes from Monday, December 5th — Thursday, December 8th.
How to vote
- Visit https://snapshot.org/#/quickvote.eth after the snapshot on Monday, December 5th
- Connect your MetaMask Wallet (or other Polygon-compatible, self-custodial wallet)
- Make sure you’re connected to the Matic Mainnet
- The combined weight of New QUICK and dQUICK in your wallet at the time of the snapshot will dictate the weight of your vote
- $QUICK staked in select liquidity pools will also be counted in the weight of your vote
3. Select the open proposal titled, “Should QuickSwap Build a Liquidity Rebalancing/Arbitrage Tool for the DEX?”
4. Click on the option you prefer
5. Confirm your selection in your wallet
We invite you to come and discuss this matter openly in any of our online forums, but with particular emphasis on our Reddit discussion board. Ensuring that our DEX thrives has always been our highest ambition, and we know that we can’t do that without the support of valued community members — like you! So come let us know what you’re thinking anytime.