Summary
0xPlasma Labs (@0xPlasma) proposes integrating Quadrat (plasma.finance/quadrat) active liquidity management protocol and Booster farming tools into the SushiSwap v3 DEX. By doing so, we aim to establish a strong partnership and contribute to developing a highly capital-efficient DEX protocol on every blockchain where Sushi v3 is deployed.
Abstract
With the launch of Sushi v3 DEX we believe that this is the right moment to integrate the liquidity management protocol and farming to boost the liquidity, volume, and fees for Sushi Token. Here are some preliminary reasons for this proposal:
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Capital Efficiency: Quadrat Protocol’s strategies have been designed to maximize the APY of the strategy, which will drive greater capital efficiency in the SushiSwap DEX v3.
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Reinvestment of Earned Fees: Quadrat Protocol automatically reinvests earned fees back into the Sushiswap v3 Pool Strategy, creating a compounding effect for deployed capital that could increase the value and utility of SUSHI tokens.
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Non-Custodial Asset Management: Quadrat’s permissionless factory contract allows asset managers to create non-custodial vaults or strategies on any blockchain where Sushiswap v3 is deployed. This brings enhanced security, trust, and flexibility to SushiSwap users.
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Liquidity Management: Quadrat provides active liquidity management, which could contribute to improved liquidity and stability on SushiSwap DEX v3.
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Effective Rebalancing Mechanism: Quadrat’s rebalancing function provides a highly effective mechanism for asset managers to rebalance and exchange assets with maximum accuracy and minimum losses, potentially reducing impermanent loss and maximizing return on investment.
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Improved Capital Deployment: Quadrat vaults allow liquidity providers to deposit funds and passively earn high fees from Uniswap v3, improving the efficiency of capital deployment on SushiSwap.
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User-friendly UI: Quadrat protocol has a professional and user-friendly UI with many analytics tools for Liquidity Providers on Sushiswap v3. The current Quadrat UI is hosted here (apy.plasma.finance/#/quadrat/plasma).
Background
Quadrat Protocol is a product developed by the renowned 0xPlasma Labs, a decentralized DeFi development team with a strong reputation in the blockchain space. With the mission to build the most capital-efficient protocol in the multi-chain DeFi world, 0xPlasma Labs introduced Quadrat as a robust, decentralized, and highly capital-efficient active liquidity management protocol, built on top of Uniswap v3.
The protocol has been designed to capture the maximum possible rewards from intelligent liquidity provision in the pools and has already demonstrated its positive impact on the Uniswap v3 protocol and the broader multi-chain DeFi ecosystem.
On the other hand, Plasma Finance (apy.plasma.finance/#/quadrat/plasma), the platform where Quadrat Protocol is integrated and hosted, serves as a robust Web3 platform providing comprehensive DeFi functionality. From analytics to yield farming, Plasma Finance encompasses a wide range of DeFi services, making it an all-encompassing solution for cryptocurrency users.
The team at 0xPlasma Labs has extensive experience in blockchain and DeFi, and their work has consistently reflected their dedication to creating innovative and user-friendly solutions. Integrating Quadrat Protocol into SushiSwap v3 represents a continuation of these efforts, aiming to bring greater capital efficiency and liquidity management to SushiSwap users.
Sushi Analytics
In the era dominated by Uniswap v3, the Sushiswap protocol has experienced a significant reduction in liquidity, trading volume, and overall market share, despite SushiSwap’s broad deployment across various blockchains. Presented below is a comparison of the Total Value Locked for Uniswap and Sushiswap across several major networks:
| Protocol | Chain | TVL |
|---|---|---|
| Uniswap V2 | Ethereum | $1,183,851,933 |
| Uniswap V3 | Ethereum | $2,352,476,679 |
| Uniswap V3 | Arbitrum | $287,683,451 |
| Uniswap V3 | Binance | $14,824,309 |
| Uniswap V3 | Celo | $9,603,019 |
| Uniswap V3 | Optimism | $60,110,141 |
| Uniswap V3 | Polygon | $87,559,195 |
| Sushiswap | Ethereum | $261,691,428 |
| Sushiswap | Arbitrum | $61,944,099 |
| Sushiswap | Polygon | $21,490,124 |
| Sushiswap V3 | Ethereum | $1,639,980 |
| Sushiswap V3 | Arbitrum | $2,175,454 |
| Sushiswap V3 | Binance | $40,543 |
| Sushiswap V3 | Polygon | $621,894 |
Opportunities
Uniswap v3 currently hosts numerous pools and liquidity, much of which remains underutilized due to the limited education of Liquidity Providers (LPs) and the absence of a wide-ranging network of liquidity managers. However, with the launch of Sushiswap v3 in tandem with the Quadrat Active Liquidity Management protocol, and by initiating an educational campaign to incentivize liquidity for v3 pools, Sushi could once again vie with Uniswap v3, reclaiming its desirable TVL and trading volume.
About Quadrat Protocol
The Quadrat Protocol is a permissionless, decentralized, and highly capital-efficient active liquidity management protocol built on top of Uniswap v3 to capture the maximum possible rewards from smart liquidity provision in the pools. The protocol is powered by 0xPlasma Labs​.
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Quadrat Protocol aims to solve the complexity of Uniswap v3, where 95% of liquidity providers don’t generate any rewards on their capital, and the rest 5% of liquidity providers are receiving impermanent losses on their positions without any proper Web3 tools to hedge and rebalance liquidity​.
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The protocol converts non-fungible liquidity positions of Uniswap v3 into LP tokens of ERC-20 standard, enabling liquidity to be used in any external DeFi protocols (staking, lending, farming, DAO, etc.)​.
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Quadrat’s Permissionless Factory Contract allows Asset Managers to create Uniswap v3 non-custodial Vaults or Strategies on any blockchain where Uniswap v3 is deployed (Ethereum, Optimism, Polygon, Arbitrum)​​.
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Liquidity Providers can deposit funds into Quadrat Vaults and passively earn high fees from Uniswap v3. Asset Managers don’t have access to users’ funds, but can rebalance Uniswap v3 Pool Price Ranges of the Strategy​​.
Protocol Strategies automatically reinvest earned fees back into Uniswap v3 Pool Strategy to achieve a compounding effect for deployed capital. Asset Managers can implement a wide range of strategies to manage concentrated liquidity in Uniswap v3, maximizing the APY of the Strategy​​.
In summary, the Quadrat Protocol offers a range of benefits to its users, including high capital efficiency, passive income from high fees, and effective liquidity management. It also provides the ability to participate in various DeFi activities, and offers security through its non-custodial nature and the lack of access Asset Managers have to users’ funds.
About Quadrat Farming/Staking Protocol Extension
The Quadrat Booster is a key part of the Quadrat Protocol that significantly benefits AMM v3 and token pools. The Quadrat Booster is a yield-farming tool designed to be a liquidity mining solution for the DeFi ecosystem. It allows protocols, teams, and developers to create customized yield farming campaigns on Uniswap v3. This is made possible through the non-custodial Vault strategies, allowing the protocol to deposit user funds in Uniswap v3 and manage them actively to maximize returns.
Quadrat Booster Info (quadrat.plasma.finance/quadrat-booster/booster-overview)
Quadrat Booster’s benefits include the following:
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Open Accessibility: The Quadrat Booster is accessible to any protocol, team, or developer that wishes to incentivize liquidity provision for their token pairs on AMM v3.
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Customizability: Quadrat Booster allows for the creation of customized yield farming campaigns with specified parameters such as duration, rewards, APY, and more. Booster also allows to set a liquidity lock for farming/staking campaigns.
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Non-custodial Vault Strategies: Funds deposited by users into the Quadrat Vaults are managed actively to maximize returns. The asset managers implementing these strategies do not have access to the users’ funds directly, ensuring a degree of safety.
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Enhanced Yield: Through the active management of liquidity in AMM v3 pools, Quadrat Booster aims to offer high APYs, making it attractive for liquidity providers.
Benefits for token projects (quadrat.plasma.finance/quadrat-booster/using-quadrat-booster-for-protocol-team-tokenomic-and-liquidity-improvement)
Quadrat Booster can be used by Sushi DAO and Governance to incentivize the most important pool strategies.
Scope of work from 0xPlasma Labs
- Integration of the Quadrat Protocol to Sushi v3 on Ethereum, Optimism, Arbitrum, Polygon, BNB
- Integration of single token deposit and withdraw protocol for the Sushi v3 Strategies
- Integration of Farming/Staking Quadrat Protocol to Quadrat Strategies on Sushi v3
- Maintain subgraph for every chain and integration
- Sushi Quadrat UI integration into Plasma Finance Dashboard
Potential Integration request from the Sushi team
- UI integration of selected strategies for main pools
- UI integration of Farming/Staking to incentivize strategies on Sushi v3
0xPlasma Labs will provide all necessary documentation for fast and smooth integration.
Requested resources for the implementation of the Quadrat protocol into the Sushi Ecosystem
We are proposing to obtain a grant of 100,000 Sushi tokens from the treasury, which will be expended over a period of 12 months, allocated according to the following stages:
- Stage One (~1 month) - This stage involves the comprehensive integration of the Quadrat Protocol and Booster into Sushi v3.
- Stage Two (~12 months) - This stage includes the support and maintenance of the Quadrat X Sushi Infrastructure, along with the execution of a marketing campaign.
Roadmap of the proposal
- Stage One: This involves the integration of the Quadrat Protocol and farming tools, along with the development of a user-friendly UI/UX tailored for SushiSwap users.
- Stage Two: This stage will engage the community in discussions to establish vault strategies (narrow or wide ranges) for managing major liquidity pools on SushiSwap v3. The strategies set during this stage will be automatically managed by the 0xPlasma Labs team.
- Stage Three: The community will be engaged once again to establish an incentive program for every important pool strategy, using Quadrat Booster. This aims to attract more liquidity and ensure its retention within the SushiSwap v3 pools.
We invite the SUSHI community and major delegates @jaredgrey @Zapacheenie @maka @ImSoftware @BoringCrypto @MDR @Tangle @0xMaki to contribute their insights and participate in this discussion regarding the potential partnership with Quadrat Protocol for active liquidity management on Sushi v3. Your input is highly valued and essential to our decision-making process.
Relevant information about the Quadrat Protocol and Booster:
Dashboard: apy.plasma.finance/#/quadrat/plasma
Whitepaper: quadrat.plasma.finance/
Booster: quadrat.plasma.finance/quadrat-booster/booster-overview
Website: plasma.finance/quadrat
Twitter: @0xQuadrat
Looking Forward,
0xPlasma Labs
- Yes, Accept the proposal
- No, Do not Accept the proposal
0 voters
