QIP020: Choosing AMMs

Please read the entire proposal before voting, as there are several factors to consider.

Summary:

Our current liquidity mining incentives on QuickSwap are scheduled to end on September 2nd. This proposal is for the community to decide whether or not we will extend liquidity mining incentives and if so on what AMM. The amount of rewards and what LPs to reward will be decided on a different proposal.

The liquidity mining rewards QiDao currently has on QuickSwap started on May 5th and were scheduled to last 120 days. Below is an overview of the current rewards:

Qi rewards:

• MAI-USDC LP receives 1 Qi per block
• QI-MAI LP receives 2 Qi per block

QUICK rewards:

• QI-QUICK LP receives 1 QUICK per day
• MAI-USDC LP receives 10 QUICK per day

These LPs currently have $110 million in TVL and $2.7 million of 24 hr trading volume.

The community can vote to extend, stop, or migrate those rewards to another AMM. Please note that a follow up proposal will be submitted to discuss the amount of incentives QiDao would distribute and what LPs would be rewarded. The rewards period, if approved, will last 90 days.

Below are the offers QiDao has received from some of the top 5 AMMs on Polygon. The following offers are based on a scenario in which QiDao reduces their current rewards emission by half. If the community decides to reduce the current emissions by more than half, the committed rewards from the AMMs may vary. Note that our Balancer rewards will be covered in a separate proposal.

QuickSwap:

Rewards committed (QuickSwap is doubling their current incentives for our pairs):

• Stablecoin pool(s): 20 QUICK per day ($12.5k value per day). QuickSwap will have a 2x boost period for rewards for an initial period.
• QI Pair LP: 10 QUICK per day ($6.25k value per day). QuickSwap will have a 2x boost period for rewards for an initial period.
• Some rewards (unspecified) will be given to MAI-QUICK LP

Routing:

• MAI has been added to QuickSwap routing. The update should be effective in early September. Adding MAI to routing would promote its volume and reduce price impact on MAI transactions.

AMM Metrics:

• TVL: $1.03 billion; Volume: $104 million

Token Information:

• QUICK

SushiSwap

Estimated rewards (not committed - these are estimates based on volume. SushiSwap does not commit to rewards. They reward LPs based on usage):

• Stablecoin pool(s): 432 SUSHI per day ($5.4k value per day)
• QI Pair LP: 173 SUSHI per day ($2.2k value per day)

Routing:

• MAI is not used for routing on Sushi. This would negatively impact the volume and price impact of MAI transactions.

AMM Metrics:

• TVL: $617 million; Volume: $34 million

Token Information:

• SUSHI

DFYN

Rewards committed:

• Stablecoin pool(s): 24,750 Dfyn per day ($30k value per day)
• QI Pair LP: 8,250 Dfyn per day ($10k value per day)

Routing:

• MAI will be added as a default routing asset. Adding MAI to routing would promote its volume and reduce price impact on MAI transactions.

AMM Metrics:

• TVL: $226.5 million; Volume: $10 million

Token Information:

• DFYN

Quorum standards

If one AMM receives more than ⅔ of the vote, it will get all Qi LP rewards. If no AMM receives more than ⅔ of the vote, then Qi rewards will be split according to their share of the vote. The minimum amount of votes to receive Qi rewards will be ⅓ of votes.

Options:

• QuickSwap
• DFYN
• SushiSwap
• No AMM / remove incentives