/ Trading 101

Introducing the QUAD Liquidity Rewards Program

With the launch of QUAD on SushiSwap, we’re excited to introduce the QUAD Liquidity Rewards Program. Providing liquidity on a decentralized exchange (DEX) has become an essential part of the DeFi experience, enabling better liquidity, faster transactions, and a higher level of convenience for digital asset traders.

QUAD Liquidity Rewards Program: The Basics

  • Quadency DEX is now live as a fork of SushiSwap
  • Providing Liquidity has never been easier
  • Liquidity Providers earn 0.25 of trading fees PLUS a share of 228,571 QUAD tokens each week
  • Choose from QUAD/ETH and QUAD/USDC pools

If you’re already familiar with liquidity providing, you can skip the next part and go directly to the details of Quadency's Liquidity Provider (LP) Incentive Program.

What is liquidity?

Having enough liquidity means an exchange has enough liquid assets to quickly perform all the trades initiated by traders.

  • When liquidity is low, it leads to slower (or un-executed) trades, higher slippage (price changes due to time), and generally a less than optimal experience for the trader.

  • When liquidity is high, you have a more optimally functioning exchange that is attractive to investors.

Liquidity on a CEX vs. a DEX

Even though decentralized and centralized exchanges both experience an ongoing challenge to provide ample liquidity, they have different ways of going about it:

  • A centralized exchange uses market makers, which are traders who add liquidity to the exchange’s order book, profiting from the spread and lowered trading fees.
  • A decentralized exchange uses a peer-to-peer market making system where users stake digital assets in a Liquidity Pool and the pooled assets become liquid for swaps on the DEX.

Why provide liquidity on a DEX?

Traders who want to trade on a DEX need liquidity to be able to swap their tokens with others. By providing liquidity, LPs usually earn a share of the trading generated by the pool.

On Sushi, LPs earns 0.25% share of the transaction fees according to their share of the liquidity pool. At Quadency we believe Liquidity is key to provide the best trading experience for QUAD, as such we’re launching the Liquidity Provider Incentive Program.

Provide QUAD liquidity to earn your share of ~228k QUAD every week

With the launch of the QUAD Token on the Quadency DEX, you can now provide liquidity to QUAD/ETH and QUAD/USDC.

On top of the 0.25% trading fee sharing (via SushiSwap), Liquidity Providers will share 228,571 QUAD tokens each week based on their share of the total liquidity pool. The formula to calculate QUAD rewards is:

Liquidity Rewards= User's Share of the Pool/Total Pool Value*Weekly Reward

Rewards will be deposited on a weekly basis in the address providing liquidity on the QUAD/ETH and QUAD/USDC pools. You can learn more about the program's schedule here.

Here’s how it works:

Steps for Providing Liquidity on Quadency DEX:

  1. Go to Sushi.
  2. Make sure to have your Web3 wallet connected.
  3. Next, choose which token pair/pool you want to select for providing liquidity.
  4. Select ETH or USDC as a base token
  5. After selecting the desired tokens and the amount, click Supply!

If this is your first time interacting with SushiSwap's smart contracts for the tokens in question, you will be prompted to Approve that the smart contracts are allowed to handle them for you.

After you’ve added liquidity, you’ll receive Sushi Liquidity Provider tokens (SLPs) in return. These represent your share in the liquidity pool and the amount of earned fees that are received when you withdraw from providing liquidity.

Once you’ve completed all these steps, you’ve officially become a Liquidity Provider, earning a share of the transaction fees, taking part in the liquidity management for QUAD tokens, and earning more QUAD rewards.

Be sure to join us on Telegram and Twitter!

Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice. Quadency reserves the right to update or discontinue this program at its sole discretion. Quadency DEX is a fork of the open source SushiSwap interface. It offers simplified access to the same smart contracts available via Sushi.com. As such and as with any other decentralized exchange, your assets remain in your custody. Quadency does not have access to funds in your self-custodial wallet (MetaMask etc) and is not responsible for loss of funds held in those wallets.