Proposal: Boost wQuil Liquidity and Incentivize Long-Term Holding with Emission-Free Yield via Peapods Finance Integration
Overview:
Integrating wQuil into Peapods Finance provides an immediate boost in liquidity, delivering sustainable, emission-free yield designed to incentivize long-term holding and reduce sell pressure. Peapods captures yield through arbitrage profits without relying on inflationary emissions, perfectly aligning with Quilibrium’s vision for decentralized, sustainable growth—all at zero cost and minimal effort.
How Peapods and Yield Generation Work:
Peapods Finance uses Pods, smart contracts that tokenize the price volatility of assets like wQuil. Users deposit wQuil into a Pod and receive pwQuil, representing their share of the Pod’s activities. The Pod leverages market volatility to generate untapped yield through arbitrage, providing non-inflationary rewards tied directly to market performance.
Activate wQuil Staking and Yield:
Peapods unlocks new yield opportunities for Quilibrium and its community through strategic volatility farming:
1. For Quilibrium Treasury:
• Pod Revenue: Quilibrium earns a share of the 5% fee on profits generated by the Pod’s arbitrage activities. This passive income stream offers consistent, emission-free rewards directly tied to the Pod’s performance, boosting the protocol’s treasury without any active management.
2. For wQuil Holders:
• Stable Yield Farmers: wQuil holders who prefer lower-risk, stable returns can deposit into the Pod, benefiting from consistent yield payouts. Farmers earn extra exposure to wQUIL as the value of pwQUIL grows vs wQUIL over time.
• Volatility Farmers: wQuil holders seeking higher returns can leverage their assets in the Pod, gaining exposure to enhanced yield from price volatility. They earn dual rewards—$PEAS tokens and extra wQuil—maximizing their potential yield while benefiting from market fluctuations.
Integration Requirements:
• Zero Setup or Technical Work: Due to the decentralised nature of Peapods, anybody can set up a pod however the team is more than happy to manage Pod setup and operation, requiring no technical involvement from Quilibrium’s team.
• $50K in wQuil: A fully liquid deposit of $50K in wQuil is required to establish the initial liquidity base. This capital can be withdrawn at any time. No paired asset is needed, streamlining the process and minimizing capital requirements.
The $50K deposit provides a strong foundation for the Pod, enabling efficient yield farming and arbitrage. It also allows Peapods to generate internal synthetic liquidity, effectively doubling the capital available for yield generation without external pairing assets.You can read through in depth functionality HERE
Why It’s Risk-Free:
• No Paired Asset Needed: Uses only wQuil, eliminating the complexities and risks associated with external liquidity.
• Fully Collateralized: The Pod operates with 100% wQuil collateral, ensuring safety and reducing liquidation risks.
• Flexible Withdrawal: Both Quilibrium and wQuil holders can withdraw their liquidity anytime without penalties.
Key Benefits:
• Immediate Liquidity Boost: Enhances market depth, reduces slippage, and stabilizes wQuil prices.
• Incentivizes Long-Term Holding: Emission-free rewards reduce sell pressure and promote retention of wQuil.
• Simplified Participation: Single-sided deposits streamline the process, avoiding the need for complex paired liquidity setups.
• Dual Rewards: LPs earn $PEAS tokens, while single-sided stakers receive extra wQuil, maximizing their returns.
• Marketing: Peas will launch the pod activation to coincide with the anticipated launch of their latest tech upgrade and will receive significant exposure across all channels throughout the launch week.
Proven Case Studies:
• pEEFI Pod: Achieved total rewards of $93.1k, with an APR of 84.3%, and a TVL of $2.0M.
• psVEC Pod: Generated total rewards of $183.4k, with an APR of 75.8%, and a TVL of $1.5M.
Co-Marketing Partnership:
Peapods and Quilibrium will collaborate on a joint marketing campaign, promoting the integration through their Telegram and X channels. The campaign will highlight the benefits of increased liquidity, sustainable yield, and shared community growth.
Peapods’ Proven Track Record:
Peapods Finance has been building for over a year, achieving a $60M market cap and a TVL peak of $60M. The protocol consistently delivers real, emission-free yield, setting a new benchmark in sustainable DeFi. This partnership aims to enhance liquidity and provide streamlined, sustainable yield generation for Quilibrium and its users.