QuickSwap Governance Proposal: Should We Move Forward with a V3 ‘Concentrated Liquidity’ Model?

June 23rd 2022

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After a few days of discussion in our Reddit forum and across social platforms, QuickSwap is introducing a governance vote about the possibility of acquiring a license for a V3 ‘concentrated liquidity’ protocol.

TL; DR

Earlier this week, we opened a discussion forum asking our community if QuickSwap should move forward with the acquisition of a license for a V3 ‘concentrated liquidity’ protocol.
We believe that acquiring a V3 model will help QuickSwap regain volume dominance among Polygon’s many DEXs and provide a more efficient trading environment for Polygon’s users.
After a few days, most of the community seems to be on board with the proposal, recognizing that the acquisition of a V3 would be the biggest upgrade in QuickSwap’s history.
We need a maximum of $350,000 from the treasury to pay for audits to ensure the protocol’s safety.
We are now moving to the next phase a governance vote.
The snapshot for the vote will take place on Friday, June 24th.
The vote will begin immediately after the snapshot and will run until Tuesday, June 28th.
If the vote passes, we anticipate implementing the V3 in Q3 of this year (estimate).
We have a simultaneous governance discussion and vote going on about implementing an isolated lending and borrowing market. QUICK holders can participate in both governance votes.
Details about the proposal, voting eligibility, and how to participate in QuickSwap’s upcoming governance vote follow.

Is a V3 better than V2? That’s not the question

As we explained in our previous blog, our existing V2 would continue to run alongside our V3 (as UniSwap’s does on Ethereum). Because our internal aggregator will route trades through whichever pool or pools are most efficent depending on a combination of lowest fees, slippage, highest TVL, and arbitrage differences, traders who use our DEX won’t even know whether they’re using our V2, V3, or both.

A V3 will be better for traders because the fees are lower, which means trades routed through our V3 will result in lower revenue for Dragon’s Lair stakers and the QuickSwap Foundation. We believe that we will more than makeup for the lower revenue with increased volume over time — as UniSwap has already proven. In addition, our V2 will continue to collect the 0.3% trading fee that it always has, so it is likely that our revenue will remain unchanged with the introduction of a V3.

For a more in-depth understanding of how this proposed upgrade to our DEX could impact you, please refer to our blog here and the discussion surrounding it in our Reddit forum.

Voting Eligibility

This is a decision that could seriously impact our DEX. Since we’re community-driven, this process works best when as many QUICK holders as possible take part. We want you to have a say in the future of our DEX. To do this, you have to make sure that you are eligible. 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 Friday, June 24th.

To be clear 1000 New QUICK will have the same weight as 1 Old QUICK in the governance vote.

You are eligible to vote if you meet any of the following conditions

You hold Old QUICK in a MetaMask Wallet or another Polygon-enabled wallet to which you control the private keys. Please note To qualify, your Old QUICK must be held on the Polygon Network and not on Ethereum, BSC, or any other chain.
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 Old QUICK into the Dragon’s Lair and are now holding dQUICK in its place while you accumulate more Old QUICK.
You deposited your Old QUICK into a Dragon’s Syrup Pool and are farming other tokens with it.
You deposited your New QUICK into a Dragon’s Syrup Pool and are farming other tokens with it.
You are providing liquidity for select New QUICK pairs on QuickSwap and have staked your LP so you’re earning trading fees and dQUICK rewards. Select pairs include
New QUICK — USDC
New QUICK — ETH

You are not eligible to vote if

You hold Old or New QUICK on a centralised exchange wallet (such as Binance, Coinbase, Crypto.com, etc) to which you do not hold the private keys.
You hold Old or 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 a QUICK pair not listed above on QuickSwap or for any QUICK pair on another DEX. (To be clear Only the QUICK you are using to LP for pairs not mentioned above will be excluded from the snapshot. If you also hold QUICK that you are not using to LP with, you will be eligible to vote with that).
You have deposited your dQUICK in a vault outside of QuickSwap to lend or borrow.

Timeline

The snapshot will take place on Friday, June 24th, 2022. The vote will begin immediately after and will run for 5 days. Eligible QUICK holders will have the opportunity to cast their votes from Friday, June 24th — Tuesday, June 28th.

If this vote passes, QuickSwap will initiate the audits of the V3 immediately and launch the V3 in Q3 of this year.*

*This is an estimate. While the coding is complete, software is sometimes tricky. All dates are subject to change without prior notice.

How to participate in the vote

Visit https://snapshot.org/#/quickvote.eth after the snapshot on Friday, June 24th.
Connect your MetaMask Wallet (or other Polygon-compatible, self-custodial wallet)

Make sure you’re connected to the Matic Mainnet
The combined weight of Old QUICK, 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 We Move Forward with a V3 ‘Concentrated Liquidity’ Model?”

4. Click on the option you prefer

5. Confirm your selection in your wallet

Which way to vote?

QuickSwap’s team adamantly supports this proposal. We believe that acquiring a V3 would be the biggest upgrade in QuickSwap’s history. Further, we’re certain that having a V3 would enable QuickSwap to regain most of the volume we’ve recently lost to competitors, and it would distribute capital more efficiently on Polygon. Increased volume means more revenue for stakers in the Dragon’s Lair and for the QuickSwap Foundation, which is how we continue to fund new development.

That said, QuickSwap is a community-owned and governed DEX. We can’t make unilateral decisions without your vote, and you’re allowed to disagree with us. How you vote is ultimately up to you. So, do your own research, and vote your conscience.

We invite you to come and discuss the topic openly in any of our online forums. At QuickSwap, our utmost priority has always been to ensure that our DEX thrives. We know that we can’t do that without valued community members, like you. Come let us know what you’re thinking anytime.