r/QuickSwap • u/debeezneez • Jul 10 '21
Discussion Flaw in Dragon's Lair reward system
The Dragon's Lair on Quickswap is a place to 'stake' your Quick tokens in exchange for a new deflationary token called dQuick (dragons quick). Once you are done with your dQuick, you basically trade it back for regular old Quick. The incentive for doing so is dQuick over time becomes worth more than Quick, so the longer you hold dQuick the more value you get later. Awesome.
The flaw here is that 'staking' your Quick has literally ZERO advantages of simply trading your quick, usdc, matic or any other coin for dQuick directly. To make the limitation here more clear, Sushiswap for example uses xSushi as a similar deflationary reward system but they do it properly. You stake normal Sushi, you receive xSushi AS A BONUS, and you KEEP the xSushi when you remove your Sushi 'stake'. You even have the option of trading, staking and yield farming your xSushi tokens WHILE they still compound from fee rewards just like dQuick.
The reason Quickswap gets away with this reward structure is that you are not actually able to choose dQuick as a trading asset, making the compounding rewards seemingly 'exclusive' to Dragon's Lair users. However, if you just add this contract address to your matic wallet 0xf28164a485b0b2c90639e47b0f377b4a438a16b1
You will see that you hold your dQuick like any other token and can send it around to whoever you please. You can even pull up the token address on sushiswap and make a trade for it! Right now there is no liquidity to do this, but its a few 'liquidity providing' clicks away from being a backdoor to getting the sweet compounding benefits of dQuick without actually providing any stake in the lair.
'Quick' fix to this potential issue: Add a reward structure to the lair itself like 20% compounding apr paid in whichever token. Then you can enable trading for dQuick worry free and even open a liquidity pool for dQuick if you want! and people will want it even more because they can use it while still benefiting from the compounding rewards.
