PoolTogether

Quickswap Mining with POOL/Quick

I wanted to start this discussion to gauge interest before developing a more in-depth PTIP.

I would like to propose that the PoolTogether treasury allocate approximately $250k in POOl tokens and $250K in USDC from PTIP-13(Assuming it passes) to seed a liquidity pool on Quickswap. The USDC would need to be swapped to QUICK on polygon to create the LP token pair of POOL/QUICK.

Quickswap is an AMM on the polygon network. I have spoken with their team about the mining rewards. if we provide this amount of liquidity the pool would receive approximately 8 QUICK per day. This represents approximately 200% APR. The protocol would accrue these rewards. QUICK is priced at around $815 today May 12th. Quickswap has stated their mining program is a long-term program. they told me they have had other protocols mining for six plus months.

If we begin to drip POOL tokens to the Polygon pools then this proposal will give users a place to earn yield on top of their POOL yield.

Pros:
Protocol acquires QUICK tokens as mining reward
People on Polygon have a place to earn yield on their POOL tokens.

Risks:
The protocol would be at risk of impermanent loss.
Smart Contract risk with Quickswap.

looking forward to hearing some feedback.

7 Likes

Another big risk imo: QUICK token price volatility.

What is the amount of QUICK drip allocated dependent on? Just our seed amount of capital?

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Yes, the more capital we provide the higher the Quick distribution

One big plus of this idea is that we can put POOL from the treasury to work yield farming.

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Polygon is a wonderful place to play pool together due to the low fees and ethereum respect. Quickswap is the leading exchange there so a partnership has the ability to bring more people to pool. And make it easier for polygon users to buy pool. I just did a painful Uniswap purchase myself but would love to buy on quick.

2 Likes

I like the idea of getting POOL onto Polygon and having good liquidity.

I think my big question though is with SushiSwap now being on Polygon and them doing a really large campaign with Matic rewards if that might be a better spot for us?

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I did not know that. That could definitely be a better option. Is there any information available about their program?

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excellent ! we have to be on polygon

It depends on what Sushiswap would want from us in exchange for incentivizing POOL LPs.
Can you reach out to them @leighton?

Potentially we can just do both.

Sushi’s APRs aren’t significantly higher than quickswap’s at the moment from what i can tell.

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If SushiSwap is going to reward LP with MATIC and SUSHI rewards I think pursuing a cross chain relationship with Sushi on ETH and Polygon is a fantastic strategy.

I can’t see a downside of doing both, in terms of the minimum threshold for QuickSwap we’re looking at here, $500k ($250k POOL/$250k QUICK), it’s a very approachable, reasonable bar.

We talked about this at last week’s swim meet and decided it would probably be worth doing, but first POOL needs to be properly bridged to Polygon.
@Brendan said he believes that can be done within a month.

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Its interesting that on polygon the pure play worked better than the bigger name. I think its because they could pay a polygon based token to LPs. and sush is only 20% polygon. That said sushis is rapidly devloping their polygon ecosystem with lending and bento box tools so it makes sense to do both now