QuickSwap DAO to build liquidity rebalancing and arbitrage tool for DEX

Following a unanimous community vote on Thursday, QuickSwap DAO will proceed to build a liquidity rebalancing and arbitrage tool for the QuickSwap decentralized exchange (DEX).

The idea was first presented to the community about two weeks ago, with the proposal highlighting the urgency of increasing revenue for stakers and the QuickSwap Foundation. According to an official blog post, revenue generated from the tool will be shared with stakers in the Dragon’s Lair. Notably, the revenue will be split as follows – 40% to the Foundation, 20% to the contracted builders, 20% to dQUICK holders, and 20% to protocol-owned liquidity.

When questioned about the decision to allocate a larger share of the revenue to the QuickSwap Foundation to build a “war chest” and the timeline for this structure, a member of the team said:

We can't provide a timeline because we don't know how much revenue this tool will generate or how long the market will stay as it is now. It could be one month. It could be 12 months […] The 40% that goes to the Foundation initially would be reduced to give more to stakers in time.

The proposal argues that there are hidden profit opportunities in several transactions initiated with DEX platforms. QuickSwap will leverage these opportunities by integrating a feature to “capture rebalancing profits and help eliminate malicious bots.” The profits will then be used to “fund the DEX’s treasury and pay for the costs of development while also rewarding QUICK token stakers.”

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