QuickSwap Governance Discussion: Should We Introduce an Isolated Lending & Borrowing Market?

TL; DR:

  • During bear markets, DeFi platforms and the people who rely on them often struggle to maintain adequate revenue to sustain their growth and development.
  • We would like to start a discussion about the possibility of introducing an isolated lending and borrowing market built using Market XYZ’s tools natively on QuickSwap.
  • An isolated lending and borrowing market will increase yield opportunities and create an additional revenue stream for QUICK stakers and the QuickSwap Foundation.
  • Lending and borrowing markets also generate increased community economic activity.
  • From these markets, many other DeFi tools can be built upon to compound value.
  • We have already built the market using Market XYZ’s build a market tool and will be ready to deploy it on our user interface if and when the community votes in favor of the proposal.
  • Market XYZ has experience building such platforms and is a trusted friend of the Polygon ecosystem.
  • The code has already been audited and no security vulnerabilities were discovered.
  • We value your input, which is why we’re introducing this discussion before conducting a governance vote.
  • We would like to move quickly and (we hope) pass this proposal so that we can finalize the details and launch it.
  • Please read through this entire document carefully before forming an opinion.
  • Once you’ve read though, visit our Reddit discussion forum to ask and questions and chat with the community: https://www.reddit.com/r/QuickSwap/comments/vh00y1/governance_discussion_should_we_introduce_an/
  • We’re running a simultaneous discussion about the possibility of acquiring a v3 to take back volume from our competitors. Read more about that here.

What is Market XYZ?

How would the isolated lending and borrowing market work on QuickSwap?

Breakdown of Fee Split

  • 90% of the interest collected from borrowers will go to the lenders
  • 5% of fees collected will go to Market XYZ
  • 3.33% will be used to market buy QUICK and distribute to stakers in the Dragon’s Lair
  • 1.67% will go to QuickSwap’s Foundation, which we use to fund our development and operational costs

Revenue Estimation

  • Increased TVL and volume
  • Building blocks for more DeFi tools
  • An increase in user activity on our DEX
  • An increase in value held on Polygon

Weighing the Pros & Cons

Pros

  • Increased user engagement
  • New opportunities to generate additional revenue
  • Added utility for LP tokens and positions
  • Increased revenue for stakers in the Dragon’s Lair
  • Increased revenue to enable the team to continue developing
  • Will increase QuickSwap’s TVL and volume as it generates more economic activity
  • A new tool for users
  • A stronger partnership with Market XYZ
  • No change to QuickSwap’s UI/UX for users who choose not to use the isolated lending/borrowing market
  • No need for QuickSwap’s development team to build or maintain

Cons

  • Increased risk for those who chose to take leveraged positions
  • Even though Market XYZ has been extensively audited, the risk of smart contract failure is always present. Please use with caution and only at your own risk.

How would QuickSwap featuring a lending/borrowing market impact me?

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