A QUICK Tokenomics Lesson: Use Cases for QuickSwap’s Native Token
As we recently demonstrated in a Twitter thread, QuickSwap’s native token ($QUICK) has tons of utility. In fact, it has more utility than most DEX tokens. Yet, QUICK’s market cap is significantly lower than many others. That’s why we’re thrilled that our community recently voted to do a token split to increase QUICK’s max supply. As of now, it looks like $QUICK will soon have a max supply of 1 billion (rather than its original 1 million max), but we’ll know more when the vote concludes tomorrow (on 3/23).
Although QUICK’s supply will increase, the token’s fundamentals remain the same. QUICK was a fair launch token. There was no seed round, no private sale, and no public sale. 90% of all QUICK was or will be distributed to the QuickSwap community via liquidity mining rewards, which are slated to be paid out until 2025.
In this post, we’ll go over each of QUICK’s 7 utilities available on the native QuickSwap platform. They include:
- Providing Liquidity
- Yield Farming
- Voting on Governance Decisions
- Staking in the Dragon’s Lair to earn more $QUICK
- Staking in Dragon’s Syrup Pools to earn other tokens
- Participating in IDOs
- Speculating and trading
QUICK holders can use their tokens to provide liquidity in QuickSwap’s pools.
Liquidity providers (LPs) are rewarded with the trading fees paid by those who swap tokens using that specific liquidity pool. Liquidity providers earn a 0.25% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real-time and can be claimed by withdrawing your liquidity.
Liquidity providers for select incentivized pools receive LP tokens, which they can then stake in LP Mining or Dual Mining, to earn more rewards in addition to a portion of the pool’s trading fees. This process is known as Yield farming. The LP tokens received for providing liquidity for incentivized pools can be used for yield farming.
For example: QuickSwap recently partnered with CelsiusX and Polygon to offer dual mining rewards for 3 pairs: cxADA-cxETH, cxDOGE-cxETH, and cxETH-ETH. Let’s say that you LP for the cxDOGE-cxETH pool. You would be entitled to a portion of the trading fees collected paid out in the pool’s two assets. PLUS, you would deposit your LP tokens to earn rewards paid out in dQUICK and MATIC. Currently, that pool distributes 39.48 dQUICK and 5,533.33 MATIC per day. If you provided 10% of the pool, you would also be rewarded with 10% of the dQUICK and 10% of the MATIC.
QUICK token holders decide the future of QuickSwap through governance votes. Token holders are able to vote for various aspects related to the protocol. The ultimate goal of QuickSwap is to hand over power to the community so that the platform can be managed entirely by token holders.
Some examples of the recent governance votes include:
- Changes to QuickSwap’s Rewards Structure
- Should QuickSwap Do a Token Split to Make $QUICK More Appealing?
Staking $QUICK in the Dragon’s Lair to earn more $QUICK
If you want to hold onto your $QUICK long-term, without having to deal with the risk associated with providing liquidity (e.g. impermanent loss), the safest and easiest way to generate extra rewards is to stake QUICK in the Dragon’s Lair.
This is the easiest way to earn a passive income from your hard-earned $QUICK, and this option never expires.
After you deposit your QUICK, you will start earning yield indefinitely. The main advantage is that you will continue to earn a passive income for as long as you have your $QUICK staked, and you don’t need to unstake it after a certain number of days, as is the case with Syrup Pools that expire after 30, 60, 90, or 120 days. Also, this is entirely liquid staking as stakers can withdraw their staked QUICK at any time without incurring a penalty.
If you’re new to QuickSwap and our staking mechanism, please refer to this step-by-step guide on how to stake $QUICK in the Dragon’s Lair.
Staking $QUICK in Dragon’s Syrup to earn other tokens
On QuickSwap, $QUICK holders can also generate yield by staking their QUICK in Dragon’s Syrup Pools. Staking in Syrup Pools is the second way that QUICK holders can earn passive income. Please note that Syrup Pools have a set and finite amount for rewards, and they expire when they are depleted.
When the pool is out of rewards, each user will have to manually unstake the funds and claim the rewards.
Participating in IDOs
Initial DEX Offerings, or IDOs, are a new way to raise funds for projects in development. In June 2021, QuickSwap partnered with Starter, a leading IDO launchpad on Polygon, in the QuickStart alliance. This partnership enables QUICK token holders the opportunity to participate in IDOs.
Speculating and trading
Cryptocurrencies can be traded just like any other asset.
QUICK’s price is determined by how much interest is in the market to buy it (demand) subtracted by how much is available to purchase (supply).
Traders can find $QUICK on popular centralized exchanges like Binance, Coinbase, KuCoin, Gate.io and many others, as well as other DEXs. Here’s a complete list of all available QUICK markets.
The above listed utilities are the seven use cases for QUICK on our native DEX platform, but QUICK can be used for other things, such as lending and borrowing on QiDao. In addition, QUICK’s use cases continue to evolve as our DEX. Additional utilities will be added over time.
Let us know if you have any questions about using QUICK in the comments, and join us across social media to stay up-to-date on all things QuickSwap — Polygon’s most-established DEX.