Let’s talk about $QUICK, the token for QuickSwap. It is the governance token for QuickSwap, and an “interest-bearing token” when staked into the Dragon’s Lair on QuickSwap. What does this mean? The exchange takes 0.04% of the 0.3% fee it charges, buys $QUICK from the open market, and deposits it into the Dragon’s Lair to be split proportionally amongst stakers.
To put this into perspective, The month of October saw approx ~$2.448bn in volume on QuickSwap. This translates to around ~$980k in $QUICK bought off the open market and given to Dragon’s Lair Stakers. Almost a million dollars distributed to the community in a month… insane.
Now, when you deposit your $QUICK into Dragon’s Lair, you receive $dQUICK in return. These are essentially LP tokens which determine your share of the Dragon’s Lair pool. You can then take these $dQUICK tokens, and deposit them into one of the many “Syrup Pools” that QuickSwap offers. These pools are created from projects who contribute tokens to their respective pool to gain more exposure within the community. APY’s are around 50%+ for most pools.
I ran some numbers the last few months and I’m averaging 3.5%-4% PER MONTH just from syrup pools, while the $QUICK in Dragon’s Lair continues to compound. That’s like…. 40-80 years worth of savings account returns, in a single month.
Best part of it all? No risk of impermanent loss. There ARE risks however….
So what are the risks?
-Price of the underlying, $QUICK in this case, could go down. It could also shoot up to $1500+ again. Market cap is still way undervalued compared to other large DEX’s.
-Security vulnerabilities in a smart contract / bridge. Since it’s a fork of Uniswap, the smart contracts have been battle tested through the years and has an extremely low risk of being compromised. Bridge flaws are a possibility, and Polygon just paid out $2mil for a bug bounty in their bridge contract.
So, with all that being said, go ahead and rip this apart!
submitted by /u/King_Esot3ric