QuickSwap Governance Proposal: Should We Add a Build-a-Farm Feature Powered by Cryption Network?
After a few days of discussion in our Reddit forum and across various social media platforms, we are excited to announce that we’re moving forward with a governance vote. Should we add a Build-a-Farm feature powered by the Cryption Network?
- On July 7th, we opened a discussion forum asking our community if QuickSwap should add a Build-a-Farm feature to our UI
- If implemented, Build-a-Farm would allow protocols to fund their own liquidity mining rewards and enable QuickSwap to reduce $QUICK emissions
- QuickSwap’s community expressed early support for the proposal, which is why we are now moving forward with the next phase: a governance vote
- The snapshot for the vote will take place on Monday, July 11th
- The vote will begin immediately after the snapshot and will run until Friday, July 15th
- If the vote passes, Cryption and QuickSwap’s developers will work together to implement this new feature in the coming weeks
- Details about the proposal, voting eligibility, and how to participate in QuickSwap’s upcoming governance vote follow
To farm or not to farm? That’s not the question
While liquidity mining rewards are one of the most widely used DeFi legos, providing liquidity isn’t always the best way to generate wealth. DEXs, like QuickSwap, rely on liquidity providers so traders can exchange one asset for another. That said, providing liquidity (LPing) doesn’t come without some risk. Primarily, that risk is impermanent loss (IL). Although we’re making strides to help minimize the risk of IL with the upcoming implementation of our V3 ‘Concentrated Liquidity’ model, LPs are still likely to experience some IL on highly volatile pairs for the foreseeable future.
If QuickSwap’s community votes in favor of this proposal and protocols can launch their own incentivized liquidity mining rewards pools, the risk of IL could increase depending on the assets in the pool. We want to be very clear: If this proposal passes and QuickSwap adds a Build-a-Farm feature, that doesn’t mean we’re saying you should participate in it. As we pointed out in our previous blog, exposure to permissionless liquidity mining pools comes with an increased risk for those who choose to participate. Those who LP for assets that stand the test of time stand to gain a lot, but those who LP for assets that fail stand to lose just as much. QuickSwap, Cryption Network, and Dapp Factory encourage all LPs to use their protocol cautiously and only at their own risk.
Therefore, the question isn’t whether or not you should farm, it’s whether or not QuickSwap should add the Build-a-Farm feature to our UI. The advantages of adding the Build-a-Farm feature include:
- Lowers QUICK/dQUICK emissions for LP mining rewards
- Entices protocols to host their own incentivized liquidity pools on QuickSwap
- Increased user engagement
- Brings QuickSwap one step closer to achieving our DragonFi goal of becoming a one-stop-shop for DeFi on Polygon
- Increases QuickSwap’s TVL and volume as it generates more economic activity
- A stronger connection with the veteran builders behind Cryption Network and Dapp Factory
- No change to QuickSwap’s UI/UX for users who chose not to engage with the Build-a-Farm feature
- As far as we know, QuickSwap would be the first AMM DEX to include this feature, giving us the first-mover advantage
For more information about the potential advantages and disadvantages of adding this feature and how it would affect you, please review our blog: QuickSwap Governance Discussion: Should We Add a Build-a-Farm Feature Powered by Cryption Network?
When we opened our Reddit discussion forum and invited our community to come to talk through this proposal, we felt a little bit like this guy. 👇
The few community members who did speak up were strongly in favor of the proposal. Then, Cryption Network’s CEO, Humayun Sheikh, chimed in saying,
I would like to mention one of the main reasons to use this is the reduction in the inflation of QUICK. We’ve all seen how PancakeSwap and almost all other DEX/farm tokens have been diluted. With Build-a-Farm, QUICK wouldn’t be given out. This gives QuickSwap the benefit of not diluting any tokens while also gaining increased liquidity through the yield farm. Some may wonder why any project would agree to dilute their own token, but all projects need liquidity. It’s better to create a farm on QuickSwap than on their own websites because of the exposure that QuickSwap can offer.
We couldn’t agree more! And since his is the most upvoted comment on the thread, we think our community agrees. That’s why we decided to move to a vote. Of course, if you’d like to discuss the matter further, please feel free to join the conversation in our Reddit forum or across any of our social media channels.
The snapshot will take place on Monday, July 11th, 2022. The vote will begin immediately after. Eligible QUICK holders will have the opportunity to cast their votes from Monday, July 11th — Friday, July 15th.
If this vote passes, QuickSwap and Cryption Network will work together to implement the Build-a-Farm feature in the next couple of weeks.
Like all governance decisions, this one could seriously impact our DEX. Because QuickSwap is community-driven, the governance process works best when as many QUICK and dQUICK holders as possible participate in the vote.
We want you to have a say in the future of our DEX. To do so, you have to make sure you’re eligible. To be eligible to vote, your QUICK must be held on the Polygon Network in a self-custodial wallet by the time of the snapshot on Monday, July 11th.
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 — ETH
New QUICK — USDC
You are not eligible to vote if:
- You hold Old or New QUICK on a centralized 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 QUICK or dQUICK in a vault outside of QuickSwap to lend or borrow.
How to participate in the vote
- Visit https://snapshot.org/#/quickvote.eth after the snapshot on Monday, July 11th.
- 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 Add a Build-a-Farm Feature?”
4. Click on the option you prefer
5. Confirm your selection in your wallet
Which way should I vote?
QuickSwap’s team is unanimously behind this proposal. We believe that adding the Build-a-Farm feature will enable QuickSwap to reduce QUICK emissions by empowering protocols to create their own liquidity mining rewards while increasing economic activity on QuickSwap and Polygon.
From our vantage point, adding the Build-a-Farm feature offers many benefits and very little risk; however, QuickSwap is a community-owned and governed DEX. We cannot and will not make decisions that impact our DEX’s future without you, and you’re allowed to disagree with us. How you vote is ultimately up to you. So do your own research, and always vote your conscience.
We invite you to come and discuss the topic openly in any of our online forums. At QuickSwap, our top 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.