Earlier in January 2024, the dragon community voted in favor of a fee split of 90% to LPs, 7% to Dragon’s Lair, and 3% to the Foundation for QuickSwap’s Uni V3 contracts launching on existing and new Chains.

However, this vote did not cover Polygon PoS, where QuickSwap has always solely used Algebra’s dynamic fee model on V3.

Introducing a more flexible model would help keep the DEX (decentralised exchange) competitive among other leading DEXs and help attract more LPs (liquidity providers).

Uni V3 contracts are industry-leading technology that provide LPs with more flexibility when it comes to their liquidity while also offering more efficiency, allowing them to allocate liquidity to trades taking place across certain price intervals. Additionally, while many institutions, projects, whales, and retail trust QuickSwap dynamic fee contracts, there are some entities that have in their agreements with investors (for example) that they can only use Uniswap unaltered contracts.

Many institutions and individuals have asked if QuickSwap has unaltered Uni V3 contracts available as an option and have said they would move liquidity to QuickSwap if these were made available. Therefore, having more options is always good for users.

As the market continues to grow and become more advanced, adoption of these contracts will be critical for QuickSwap to continue dominating on its leading chain (Polygon PoS), which is seeing surges in usage by the day, steadily growing in TVL (currently $120 million) and consistently hitting $100-250 million in daily volume.

Another great benefit is that where LPs use these contracts, more of the fees will come with QuickSwap token holders and the Foundation, whereas with Algebra contracts, the fees must be split with them.

This proposal has been introduced for the dragon community to decide if QuickSwap should launch Uni V3 contracts on Polygon PoS.

TL;DR:

• QuickSwap has currently enabled Uni V3 contracts on Polygon zkEVM, Manta Pacific, Astar zkEVM, and Immutable zkEVM. Individual new deployments require community votes. In some cases it could make sense to launch both dynamic fee & Uni V3 variable fee contracts. In some cases, per community vote we may launch one or the other.

• Uni V3 contracts are industry-leading and some of the most trusted for LPs in DeFi - if QuickSwap were to launch Uni V3 contracts on Polygon PoS (its leading chain in terms of TVL and volume), it could help attract substantially more liquidity to the DEX and enrich the DragonFi ecosystem with further growth/adoption

• This proposal is for the dragon community to decide if QuickSwap should launch Uni V3 contracts on Polygon PoS, in parallel to dynamic fee contracts. LPs, users, and projects will have the choice to launch whichever model works best for them.

• To begin, the governance discussion on the official QuickSwap Reddit will run until Saturday, March 16 at 2:00 PM UTC

• Once the Reddit discussions finish, a formal Snapshot vote will begin and run from Saturday, March 16 at 2:00 PM UTC until Wednesday, March 20 at 2:00 PM UTC

• Once you’ve read this entire blog post, make sure to visit the official QuickSwap Reddit discussion forum to share your perspective with your fellow community members