QIP #9 : Introduction of qTHE to veTHE Redemption Mechanism

Abstract

To build trust and enhance long-term sustainability, this proposal introduces a redemption mechanism from qTHE to veTHE. The initiative is designed to ease flows in and out of Quoll, decrease risk for new entrants, and support healthier protocol dynamics over time.

Proposed Changes

This proposal introduces a redemption option from qTHE to veTHE at a 1:1 ratio, subject to a small 2% fee.

To ensure sustainability, redemptions will be capped weekly based on rebase to maintain vlQUO holders ROI. It will be allocated on a first-come, first-served (FCFS) basis. Any excess requests will be refunded, and all redeemed qTHE will be burnt to reduce supply. Additional veTHE acquired by Quoll through buybacks can either be added to the redemption quota or directly reinforced in protocol positions. This mechanism aims to build investor trust, provide flexibility, and improve capital efficiency while maintaining minimal risk and adaptability to market conditions.

Motivation

• Trust & Transparency : By providing a clear path to exit from qTHE into veTHE, Quoll strengthens community confidence and investor trust.
• Flexibility & Flow Management : This mechanism enables smoother capital flows in and out of Quoll, adapting to evolving market conditions.
• Community-Centric Approach : Every contribution to Quoll’s ecosystem matters; this redemption option empowers investors while ensuring overall sustainability.
• Minimal Risk Structure : Weekly caps and controlled quotas prevent strain on reserves while maintaining long-term protocol health.

Conclusion

The proposed redemption mechanism enhances trust, flexibility, and sustainability within the Quoll ecosystem. By balancing community needs with protocol resilience, Quoll reinforces its commitment to long-term value creation. If approved, the redemption mechanism will be launched with immediate effect following the conclusion of the vote. It will be done using the multisig for instant implementation.