You Voted for Freedom & We’re Giving it to You! Changes to QuickSwap’s Rewards Structure
- 95.64% of QUICK and dQUICK holders recently voted to increase stakers’ freedom by separating the Dragon’s Lair from Syrup Pools
- This change to our rewards structure will impact QUICK and dQUICK stakers in a variety of ways:
- Separating the Dragon’s Lair from Syrup Pools will give stakers the freedom to either earn more QUICK via the Dragon’s Lair or earn rewards tokens via Dragon’s Syrup, or some combinations thereof, just not using the same QUICK token simultaneously
- This will increase the APYs of both the Dragon’s Lair and Syrup Pools since they will no longer be split amongst users
- This change to our rewards structure will impact all Syrup Pools that begin after the vote was finalized on January 14th, 2022 at 10pm UTC
- Stakers in existing Syrup Pools will continue to accrue syrup rewards while they also earn QUICK in the Dragon’s Lair until those pools expire. The last Syrup Pool with the dual rewards structure will end on April 6th, 2022
- Liquidity providers for incentivized pools will continue to be rewarded in $dQUICK, which is automatically staked in the Dragon’s Lair and begins accruing interest immediately
- Liquidity providers who prefer to earn rewards in the various tokens available in Dragon’s Syrup pools that begin after today (January 14th) will first need to unstake their dQUICK from the Dragon’s Lair and then stake their QUICK in the Syrup Pool(s) of their choosing
- QuickSwap will implement this enhanced freedom nearly immediately. New Syrup Pools with a single rewards structure will begin early next week
Dragons gotta fly free
When we first opened our governance discussion forum on January 1st to talk through this proposal and gauge the community’s sentiments, several dragonites were concerned that the proposed change to QuickSwap’s rewards structure would benefit larger whales and harm smaller investors by decreasing overall APYs. After a week of discussion, and with much guidance from the elder dragons, the community seemed to come around to the proposal, realizing that large scale investors would likely favor the Dragon’s Lair since they wouldn’t need to actively manage their funds as pools end, which will result in higher APYs across the board, but particularly in Syrup Pools.
With the community (mostly) behind the proposal, we moved to vote. We asked all eligible QUICK holders if QuickSwap should increase stakers’ freedom by separating the Dragon’s Lair from Syrup Pools. Unsurprisingly, a colossal majority of 95.64% voted in favor of freedom.
Those who don’t listen when dragons speak get burned! So starting Tuesday, January 18th, to earn rewards from new Syrup Pools, stakers will deposit QUICK instead of dQUICK, separating the two types of single-asset staking available on QuickSwap’s interface.
What does this mean for me?
This change to QuickSwap’s rewards structure will have a net positive impact for all QUICK holders, stakers, and farmers. By removing the forced dual rewards structure we currently have in place, QUICK holders will gain the freedom to deploy their capital in whatever way they feel is best for them rather than being forced to earn a portion in QUICK and a portion in another token to maximize their yield. (For an example of how someone might choose to split his or her QUICK for staking, please review this blog). Additionally, APYs in both Dragon’s Lair and Syrup Pools will increase as stakers choose between them. Furthermore, this change will attract large institutional investors who do not want to actively manage their funds by withdrawing from Syrup Pools as they expire.
As the winner of our recent meme contest, ShilTelcoin put it, “I don’t want to clicky clicky!! Neither do the whales!!” Institutions and whales joining QuickSwap will benefit everyone because a project’s strength depends on the strength of its community. We want ours to grow!
Okay, but what about me, specifically?
While we’re certain that this change will positively impact every QUICK staker, we also want to ensure that our community members are aware of exactly how this modification will impact them. Below, we will walk through specific examples of what this will mean for QUICK and dQUICK stakers.
Example 1: Darren is staking in an existing Syrup Pool and wants to continue earning that token as a reward
Darren is a liquidity provider for the PSP-MATIC dual farming rewards pool. He provides one half of the pool’s liquidity, so he earns one half of the pool’s 7 QUICK (5.2 dQUICK) per day. Darren deposits the 2.6 dQUICK he earns each day into the ParaSwap Syrup Pool to earn more PSP. The ParaSwap Syrup Pool expires on April 6th, and he wants to continue earning PSP rewards until then.
Darren doesn’t have to do anything. Existing Dragon’s Syrup Pools will continue to operate with the dual yield system. When the ParaSwap pool expires, Darren will need to choose between staking in the Dragon’s Lair and staking in another Syrup Pool to earn that rewards token, but nothing needs to be done until the Syrup Pool Darren is in now expires.
Example 2: Pranjal provides liquidity for an incentivized pool and he wants to stake the rewards in the Dragon’s Lair to earn QUICK
Pranjal provides liquidity for the ETH-USDC pool. He provides one quarter of the pool’s liquidity, so he earns one quarter of the pool’s 39 QUICK (29.01 dQUICK) per day. As a major whale, Pranjal doesn’t want to actively manage his funds and keep track of when he needs to remove his tokens from expiring syrup pools. He would prefer to just stake the 9.75 QUICK he earns each day to earn more QUICK.
Pranjal doesn’t have to do anything. As of October 6th, 2021, liquidity mining rewards were paid in dQUICK so that they’re automatically staked and begin accruing interest from inflation immediately. This will not change.
Example 3: Julia provides liquidity for an incentivized pool and she wants to stake the rewards in a new Dragon’s Syrup Pool to earn that token
Julia provides liquidity for the USDC-USDT pool. She chose this stable-stable pair to mitigate her risk of impermanent loss. Julia provides one eighth of the pool’s liquidity, so she earns one eighth of the pool’s 5 QUICK (3.72 dQUICK) per day. She was staking her daily 0.465 dQUICK returns in the MATIC Syrup Pool, but that pool has now expired. Julia doesn’t mind actively managing her money, and she wants to use her dQUICK rewards to stake in a new Syrup Pool that will begin on Tuesday, January 18th.
Julia needs to take action! To stake in any new Syrup Pool, dQUICK holders, will need to follow these steps:
Step 1: Withdraw QUICK from the Dragon’s Lair
Since liquidity providers are automatically rewarded in dQUICK rather than QUICK, those who want to participate in new Syrup Pools will first need to withdraw their dQUICK from the Dragon’s Lair. From QuickSwap’s User Interface, Click “Farms” > “LP Mining”.
In the Dragon’s Lair, click “Manage”, then click “Withdraw”. A pop-up window will appear, select “Withdraw and Claim.” Confirm the selection in your MetaMask Wallet (or whichever supported wallet you use).
Step 2: Deposit QUICK in the new Syrup Pool of your Choosing
At the top of QuickSwap’s interface, select “Farms” > “Dragon’s Syrup”. Scroll to find the pool that you’d like to deposit your QUICK in. Click “Deposit”, then click “Deposit QUICK”. On the pop-up window, enter the amount of QUICK you’d like to deposit (or click MAX to deposit your entire available balance), then click “Deposit” and confirm the transaction in your wallet.
That’s it! Once you’ve completed these steps, you will be earning your desired Dragon’s Syrup. If you want to continue rolling your daily rewards into Syrup, you will need to complete this process on a regular basis, but if you don’t, you’ll be earning QUICK passively from the dQUICK rewards you generate for providing liquidity. This is one example of how a person might choose to have their syrup and eat it too, by using a portion of his or her funds to generate QUICK and another portion to generate whichever syrup he or she desires.
With all of the exciting changes that this increased freedom will bring to QuickSwap’s liquidity providers, stakers, and yield farmers, more big news is sure to follow. Join us across our social media platforms to stay up-to-date on all of QuickSwap’s latest developments.